Cost-effective to develop hydrogen engines or solar power

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There are advantages and disadvantages to using a usage tax to charge drivers whose cars emit higher pollutants. It will be more cost-effective to develop hydrogen engines or solar power, for instance, if carbon levies are implemented. It also may encourage more people to walk or ride bikes to work, which would be a healthier alternative. This might increase the viability of producing electricity from renewable sources. We will be less dependent on oil if we create more green sources. The disadvantage would be higher taxes for low-income households. Also, another disadvantage would be determining the level of external costs, and the appropriate tax percentage is challenging. A global carbon tax may reduce economic activity in poor developing countries because they cannot afford the slight increase in energy costs.

I cannot entirely agree with omitting a usage tax. I do not feel that it would stop pollution. Many daily activities cause emissions of greenhouse gases. For example, we produce greenhouse gas emissions, burning oil or gas for our home heating or using electricity generated from coal, natural gas, and oil. The quantity of emissions from your car or truck depends on how much you drive, your vehicle's fuel efficiency, and how you drive. Although I am not saying we should not be mindful, we all should do our part to save the planet. However, taxing one is not going to solve the problem.

Reference no: EM133230009

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