carbon tax

Syllable breakdown

Dictionary meaning

a direct fee levied on the burning of carbon-based fossil fuels, proportional to the amount of carbon dioxide each fuel produces when burned; designed to internalize the external costs of carbon emissions; economists widely regard it as the most efficient tool for reducing greenhouse gas emissions; implemented in countries including Canada, Sweden (since 1991), and the UK; often paired with dividend payments to households (carbon fee-and-dividend)

Examples

• Sweden's carbon tax, introduced in 1991, is among the world's highest and has cut emissions while growing the economy.
• A carbon tax makes fossil fuels more expensive, nudging consumers toward cleaner alternatives.

No pronunciation difference. British press may say 'carbon levy'.

Synonyms: carbon price, carbon levy, carbon fee