Final answer:
A sin tax is a tax imposed on socially undesirable products to discourage consumption. Examples include taxes on airline tickets and gasoline, which aim to reduce carbon emissions.
Step-by-step explanation:
A sin tax is a tax imposed on products that are considered socially undesirable, such as tobacco or alcohol. It is designed to discourage consumption of these products by making them more expensive. An example of a sin tax is the tax on airline tickets and gasoline, which are considered harmful to the environment due to their carbon emissions.
Sin taxes can have multiple impacts. They can raise government revenue, promote healthier or more environmentally friendly behavior, reduce consumption of the taxed product, and contribute to funding specific programs or services.
For example, by imposing high taxes on gasoline, governments can incentivize the use of public transportation or electric vehicles, reducing carbon emissions and promoting a cleaner environment.