Posted on: 28 June 2019Share
Across many industries, there is a great debate on whether or not implementing a carbon tax is a good idea. There are a lot of pros and cons to think about as a business owner. Take a look at a few of those pros and cons of carbon dioxide taxes to help you decide for yourself if this is a good idea.
Pro: You will have a financial incentive to use green energy.
If you have been wanting to utilize green energy in your business operation for a while, but you have yet to do so, the implementation of the carbon tax could be just what it takes to spur your efforts along. If the tax does go into effect, your business will be charged for however much greenhouse gas it is suspected that you create. To offset these costs, most business owners choose to implement strategies to help them have a "greener" operation overall.
Con: The carbon tax could increase the costs of certain fuel sources your business needs.
On the flipside of the added cost for business owners, there is the added cost for consumers. As a business owner who relies on certain types of fuel and energy, such as electricity or gasoline, you could see an uptick in the costs for what you consume. Therefore, prices could rise due to the added costs the business will incur.
Pro: You could generate entirely new revenue sources by making certain changes.
For some business owners, there will be an advantage in the fact that their own changes to avoid the emission of greenhouse gases could create new products for customers. For instance, a company that delivers only electricity may implement a solar or wind energy setup to harness natural energy that can be sold to consumers interested in renewable energy sources.
Con: You could have to raise consumer prices to make up for the extra taxes you pay.
As a business owner yourself, keeping your overall pricing low is how you maintain clients and customers. If you are having to pay extra taxes on certain energy sources, you may naturally have to raise your own pricing to cover operational costs. Of course, these prices can be offset if you are mindful about making changes. For example, the owner of a construction business may need to make a change to equipment that utilizes biofuel instead of gasoline to thwart extra taxes.
For more information on carbon dioxide tax benefits, contact an environmental agency.