A carbon tariff would make the cost of creating carbon emmissions higher. This in turn would lead to people creating less emmisions, optimizing efficiency when emmissions are neccessary, and make green production (energy sources which do not create carbon emmissions) more appealing.
A tariff makes the cost for creating emissions producing energy higher, which would presumably make it more expensive for the consumer and less likely for them to use so much energy and thus drive down production.
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