Explain the concept of carbon pricing.

Environmental Policies And Agreements Questions



80 Short 80 Medium 48 Long Answer Questions Question Index

Explain the concept of carbon pricing.

Carbon pricing is a policy approach that aims to reduce greenhouse gas emissions by putting a price on carbon dioxide and other greenhouse gas emissions. It involves placing a financial cost on the release of these gases into the atmosphere, either through a carbon tax or a cap-and-trade system. The purpose of carbon pricing is to create economic incentives for businesses and individuals to reduce their emissions and transition towards cleaner and more sustainable practices. By making carbon emissions more expensive, carbon pricing encourages the adoption of low-carbon technologies, energy efficiency measures, and the development of renewable energy sources. The revenue generated from carbon pricing can be used to fund climate change mitigation and adaptation efforts, as well as to support vulnerable communities and industries affected by the transition to a low-carbon economy.