The Difference between a Carbon Tax and an Emissions Tax   What is a Carbon Tax? The environmental community has been talking about a carbon tax for many years. A carbon tax simply puts a price on carbon dioxide emissions, usually at a set rate per ton. That price can range from $15 a ton to caps of $50 a ton. When calculated out, that only equates to 17-57 cents per gallon of E10 gasoline (10% ethanol gasoline). For CO2 emissions at coal fired power plants, or 1.5 to 5 cents per kilowatt hour in added tax or fee. This is not enough to change consumer behavior, we’ve seen in the past when the price of oil has risen sharply. Many different plans have been discussed for implementing a carbon tax. Most involve industry paying at point of extraction a tax, or fee, and then receiving a payment, or dividend at the end of the year. This is often called a “Carbon Dividend”. This fee on fossil fuels such as coal, oil, and natural gas can be tricky as not all inventories are used in the same way. An example is that some oil is used for heating, some for … Continue reading