Environmental tax

An environmental tax is a fee imposed by the government on activities or products that harm the environment, such as pollution or resource depletion. Its purpose is to encourage individuals and companies to reduce their negative impacts by making environmentally friendly choices more cost-effective. For example, a tax on carbon emissions incentivizes companies to cut their greenhouse gases. The revenue generated can also fund environmental protection efforts. Overall, environmental taxes aim to promote sustainable practices while helping manage environmental problems and their long-term impacts on society.