<![CDATA[A carbon tax is a climate policy instrument that imposes a fee on emissions of carbon dioxide (CO2) or other greenhouse gases, with the aim of reducing such emissions. The research method is literature review. The results of the study show that a carbon tax can reduce emissions by encouraging increased energy efficiency and adoption of clean technologies by companies. The economic benefits of a carbon tax include the creation of a new source of revenue for the government, which can be used to fund environmental initiatives and support vulnerable groups. The results also reveal that a carbon tax has the potential to change people's consumption behaviour by internalising the external costs of carbon emissions. Increasing the price of goods and services with a high carbon footprint encourages consumers to choose greener alternatives, thereby increasing demand for green products and fuelling innovation in sustainable technologies.]]>
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