Greenhouse gas emissions come from the goods and services we produce and consume. The market for goods and services fails to account for these emissions, and they have impacts that are not priced as a production cost. This represents a market failure.
Economists around the world tell us that the simplest and least expensive way to correct the market failure and reduce the amount of carbon dioxide being dumped into the atmosphere is to put a price on carbon emissions. Increasingly, governments are introducing carbon levies that improve market efficiency by allocating the costs of impacts to their emission sources. Evidence shows that carbon pricing reduces emissions,, stimulates innovation, and raises revenues that can be recycled back into the economy.
