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2. Raises Revenue. The revenue raised from carbon tax could be used to subsidise alternatives such as green electricity or the revenue raised could be used to repair the damage caused by environmental pollution.3. Leads to a socially efficient outcome. It makes people pay the social cost and overcomes the excess consumption.Have a safe birth house prices increased costs from carbon dioxide (CO2) emissions will make companies? The factory or the people in the society turned to developing more efficient technologies or alternative diets that cause carbon dioxide (CO2)Stimulating alternative to higher prices of carbon emissions has encourage companies and consumers to develop more effective tools, or an alternative to the consumption of the carbon gas emissions. For example, a carbon tax would be more effective in developing the hydrogen engine or solar itmight. Encourage more people to cycle or walk to work, it has health benefits, such as reducing the risk of heart disease y. This will make it more possible for electricity from green sources (such as solar energy) If we develop more green sources, it will make us less reliant on oil. It will help to change the oil economies posted 2 more easily. Increase revenue. The increased revenue from the carbon tax, t can be used in order to select, such as green power or income that can be used to repair damage caused by environmental pollution. 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. Carbon tags intended internalize the impact occurred. Outside the theory of it is so demanding because they will fall. the output of this social cost.
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