Carbon tax
From Green Wiki
A carbon tax should not be confused with the cap and trade systems currently being implemented in some states and discussed at the national level. In cap and trade the total allowed carbon emissions are "capped", and the permits to emit CO2 are auctioned (if the rules decide to auction them- alternatively they might be given away).
A carbon tax is a flat tax on carbon- whenever a barrel of oil comes out of the ground or is imported, it would be taxed at that point. Its an attempt at getting the end result to reflect the externalized cost of environmental damage, which otherwise is paid by all through the society, but not through the consumer. The current failure of prices to reflect their real total cost to society is thought to be a major cause of environmental degredation- the economic marketplace pushes everything towards the lowest price possible. In the absence of a carbon tax the lowest price comes at a cost of pollution and greenhouse gases. With a carbon tax, the lowest price factors in the cost of the production and transportation, and measures that minimize carbon emissions from the production line therefore reduce the cost and become economically preferrable. The consumer also tries to derease their costs by minimizing their own use of fossil fuels.
Looked at this way, the carbon tax is a logical next step in capitalism.
