CAF-7 · Chapter 2 · Question 15 of 15
A government imposes a specific tax on companies based on the volume of greenhouse gases their factories emit into the atmosphere. This is known as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Carbon Tax
Explanation
A carbon tax is a fee imposed on the burning of carbon-based fuels (coal, oil, gas) to incentivize companies to reduce their greenhouse gas emissions and environmental footprint.
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