Question

An economist for the Brookings Institution argues that​ "a price on carbon would minimize the cost of steering economic activity away from the greenhouse gas emissions that threaten the​ climate."

​Source: Fred​ Dews, "10 Things You Should Know about the Carbon​ Tax," brookings.edu, May​ 4, 2016.
In what sense does a carbon tax put a price on​ carbon?
A carbon tax puts a price on carbon by increasing the private cost of polluting.
C.
A carbon tax puts a price on carbon by decreasing the social benefit of polluting.
D.
A carbon tax puts a price on carbon by decreasing the private benefit of polluting.

Answer 1

A carbon tax puts a price on carbon by increasing the private cost of polluting.

Step-by-step explanation:

Going by the argument of the economist of Booking institution, it can be concluded that a carbon tax put a price on​ carbon "by increasing the private cost of polluting."

As the private cost of polluting increases, this will discourage the private individuals or businesses in carrying out activities that emit greenhouse gases in the human environment which in turn threatens the​ climate.