Carbon Dioxide Tax

A tax placed on those who burn fossil fuels to power their plants. The amount of tax is related to how much fossil fuel a company uses in its factory. The tax is meant to incentive companies to consider alternative ways to produce energy.

While many countries utilize this method of decreasing carbon emissions, the nation of Denmark may be the poster child for success. The country has reduced carbon emissions by 15% since the imposition of the tax in the early 1990s.