Carbon Tax with Proceeds Invested in Renewable Energy and with 100% Rebate

Physics 105 Homework #5 – Due Dec. 10
1. Discuss relative merits between a) carbon tax with proceeds invested in renewable energy, b) carbon tax with 100% rebate, and c) cap and trade carbon exchange.
While each of these approaches could help reduce the overall carbon emissions around the world, each of them have different advantages and disadvantages relative to one another. Investing proceeds from carbon tax towards renewable energy is beneficial because it does not only make people aware of their carbon footprint, but it is also widely accepted by as much as 80% of the country’s population CITATION Win17 \l 1033 (Winchester, 2017). In contrast to this, the advantage of using the ‘carbon tax with 100%’ with rebate approach is that it allows more visibility towards the programs being implemented by the government as compared to investing it towards million dollar projects like clean energy CITATION Win17 \l 1033 (Winchester, 2017). This could also motivate citizens to lessen their carbon footprint in order to save money. Lastly, the cap and trade carbon exchange is more focused towards the reduction of carbon footprints of large companies. It would be done by only allowing them to emit a controlled amount of carbon emissions, which could then force them to focus on finding other sustainab...