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Carbon tax is packaged as an international law to regulate carbon and edit external impacts from pollution, that is, those who cause environmental costs. Shall be responsible for the expenses arising from their actions. Which expenses occur will become the external costs of the company and will be pushed into a more expensive item pricing. Therefore, consumers who pay for social costs have decreased. Leading to a new social balance point, effective since the social marginal cost of output equals marginal social benefit. In theory, the tax should equal the external cost. Therefore, the price consumers pay will be the social cost.Demand will fall and the new equilibrium will be socially efficient because at this output, the marginal social cost equals the marginal social benefit.Carbon tax, this means that the last price of a good ought to include external costs and not just personal expenses it is similar to the ' establishment of a pollution. ' This has been incorporated into international law the 1992 Rio Summit, it means that those who cause environmental expenditures should be made to pay for the full social cost of their actions. In theory, tax should be equal to the external expenses. Therefore, the price consumers pay will be the social costs. Needs to be reduced, and a new equilibrium is efficient because the social cost of this export little social equal to marginal social benefits.Telephone network.The purpose of a carbon tax is to internalize the externality. What this means is that the final price of the good should include the external cost and not just the private cost. It is similar to the 'polluter pays principle.' This was incorporated into international law at the 1992 Rio Summit. It simply means those who cause environmental costs should be made to pay the full social cost of their actions.In theory, the tax should equal the external cost. Therefore, the price consumers pay will be the social cost.Demand will fall and the new equilibrium will be socially efficient because at this output, the marginal social cost equals the marginal social benefit.
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