carbon pricing strategies

Carbon pricing strategies are methods to encourage reducing greenhouse gas emissions by assigning a cost to releasing carbon dioxide. Common approaches include carbon taxes, which directly charge emitters a fee based on their emissions, and cap-and-trade systems, where a limit is set on total emissions, and companies buy or sell allowances to emit within that cap. These strategies make polluting more expensive, incentivizing businesses and individuals to choose cleaner energy options and innovate sustainable practices. The goal is to internalize environmental costs and drive a transition toward a low-carbon economy.