Effectiveness of Carbon Taxes While the primary purpose of carbon taxes is to reduce GHG emissions, most existing carbon policies introduce no processes or specific requirements to evaluate policy effectiveness in reducing emissions, although some attempted to assess their effects. Determining the overall impacts of a carbon tax can be challenging because many factors can affect overall carbon dioxide emissions, including economic growth levels and other programs designed to address environmental impacts.15
Evaluation of Emissions Benefits of Carbon Taxes
Even so, measurement, tracking, and program evaluation are important to determine the impact of the policy, especially if emissions reductions are the ultimate goal.