The Netherlands and Norway, indicated that carbon tax signifi- cantly affects economic growth in Finland, but it is not significant in the other countries. This may be caused by the different impacts of carbon taxes in different countries, which mainly derive from the policy approach and different rates imposed. Developed economies, such as Australia, are struggling to reduce global emissions by imposing carbon taxes. However, the effect is deemed too small, as many developing countries have ignored the environmental protection in order to achieve their aim to become developed economies ([1]). Furthermore, carbon tax is considered to be a burden, specifically for developing countries. This is because, when the tax is imposed, it will increase the cost of development, which, in turn, might lead to a distortion in the economic growth. Furthermore, Kiuila and Markandya [28], and Zhou et al. [29] report that carbon tax is able to produce a positive impact when the tax is designed to shift the burden from the labour force or household income to environmental pollution.