Carbon Tax is levied on those companies which have the usage of natural resources in their company and emit a lot of CO2 while the process is going on.
Due to this case on Amazon, it lost almost over 13% of its share, which is called as AMZN in the share market.
Carbon taxes are imposed to reduce the usage of coal and other resources which can be depleted easily and also emits a harmful substance during the process. A carbon tax can also be called Carbon pricing because the company has to pay a certain amount at the end of every month for the amount of CO emitted.
Whenever coal, petroleum and natural gas is burnt, its carbon element is converted into CO2, which is very deadly for the humans as well as the animals and the nature surrounding them.
Researchers tell that this carbon tax is a waste policy and no one is stopping the use of these resources, but according to the survey done by them, it shows that over 74 countries and 100 cities will be carbon-free from 2050.
As of 2019, carbon taxes have already been implemented or is going to be implemented or scheduled in 25 countries. While the other 46 countries have already done so and also had applied extra charges during the purchase of the natural resource like coal, natural gas etc.
What is the impact of a carbon tax?
Research has shown that carbon tax has helped a lot to reduce the emission of harmful gasses from the greenhouse.
This an overwhelming agreement among economists that carbon tax is the way that can help users to reduce the usage of harmful substance in our daily life and switch to a more healthy and efficient way of power.
A study in 2015 states that in the carbon taxes in British Columbia has reduced the emission of greenhouse gas by 5% – 15% while having a negligible effect on the overall economic state.
A study in 2017 of British Columbia states that the countries have benefitted from this tax as it has brought about the reduction in the usage of the natural resources that emit dangerous gases when they are burnt to produce energy source for some companies.
A 2020 study states that it has reduced the usage of such resources, and these taxes have not led to the downfall in the economic growth of a country.
A number of the study states that when these things go further up, then it would affect the usage of these products for the poor household people. You can get more information from https://www.webull.com/newslist/nasdaq-amzn.