Answer to Question #155967 in Economics for yo

Question

1. As the economy recovers in 2021, if there is a carbon tax, what will happen in the market for alternative sources of energy, like solar panels and wind turbines?

Answer 1

The market for alternative energy sources such as solar panels and wind turbines will skyrocket if the economy revives. With the introduction of a tax on hydrocarbon emissions, private companies will invest in existing alternative energy sources to make them more efficient.