Taxing carbon might sound good, but does it work? Know the pros and cons

Economists argue that in theory taxing the companies that produce fossil fuels or the consumers who buy their products, or perhaps both, should curb the supply of and demand for oil, gas and coal

Exxon Mobil is backing a proposal to tax oil, gas and coal companies for the carbon they emit and redistribute the money raised that way to all Americans. It’s also giving a group urging Washington to enact a tax on carbon US$1 million to advocate for this policy.

The carbon dividends plan, named after the former U.S. officials who conceived it – James Baker and George Shultz – reflects the research of Yale economist William Nordhaus, one of the two winners of the 2018 Nobel Memorial