There are many advantages and disadvantages to Carbon Tax, some advantages are;
They put a limit on the costs of emissions reduction.
They can be implemented quickly.
They are predictable in their costs. Relatively stable price signals can help business and consumers plan energy spending and provide greater certainty for investments in energy efficiency that have large costs. They are a permanent incentive to reduce emissions. The price of pollutants does not change. They are economically efficient in that they are transparent, simple and can have a wide coverage. They can be implemented across a wide variety of economies and therefore are a suitable action on reducing greenhouse gas emissions.
For these reasons a number of economists support the introduction of such taxes. However, carbon taxes as a means of controlling greenhouse gas emissions also has some disadvantages:
There are no guarantees that emissions will decline if consumption of the goods and services that produce carbon emissions remains unresponsive to price increases. To date, it has not received much support as the preferred method of controlling greenhouse gas emissions. To date the international community appears to prefer...