Carbon Taxes Slash Emissions, Transforming Climate Action Landscape
The study looked at how carbon pricing and other climate policies affect carbon dioxide emissions in 121 countries. They found that higher carbon taxes and prices of permits in emissions trading systems reduce carbon emissions. For example, a $10 increase in carbon taxes per ton of CO2 led to a 1.3% decrease in CO2 emissions per person in the short term and a 4.6% decrease in the long term.