Earlier this month, the IMF published a statement finding that placing a $75 per ton duplicate tax in place by 2030 would make average worldwide energy prices from coal to surge by 214 percent. Out of all the countries the IMF measured, France’s power bill from coal would upsurge the least, increasing by a mere 123 percent. Argentina was the country that would watch its energy bill from coal rise the most under this strategy and timeframe, growing by nearly 300 percent.
Other energy sources saw a much broader scope in the uptick in energy prices. The IMF predicts that France would only have a two percent rise in its electricity bill, while globally, electricity costs would rise by closely 20 times that rate. Gasoline had the slightest increase in energy prices and the tightest range in costs. As other types of strength, like natural gas, electricity, and gasoline, release less CO2, the carbon tax would cause less movement in energy costs, even under a high tax situation.
A carbon tax is a financial punishment a government and an intergovernmental body can put in place to disincentive types of energy that discharge a lot of carbon dioxide in the air, which is a greenhouse gas that’s associated with a warming effect in the atmosphere.
The IMF discovered a carbon tax of $75 per ton of carbon would need to be instituted by 2030 around the world and, mainly, in countries that are major emitters to limit heating above 2 degrees Celsius.