Energy Tax


DEFINITION of 'Energy Tax'

A surcharge on fossil fuels such as oil, coal and natural gas. The purpose of an energy tax is to give businesses and consumers an incentive to use alternative energy sources, such as solar and wind power, and to raise revenue for the government in order to finance public spending. Some environmentalists believe energy taxes are necessary to reduce the greenhouse gas emissions that are theorized to cause global warming. Opponents of energy taxes warn of their unintended consequences, like an increase in the price of virtually everything that will reduce individuals' and families' disposable income.


Energy taxes can exist in a number of forms, from regulations that require automakers to reduce cars' carbon dioxide emissions to surcharges on electricity bills. President Obama's fiscal year 2010 budget included a cap-and-trade energy tax.

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  6. Energy Sector

    A category of stocks that relate to producing or supplying energy. ...
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  1. Is the high cost of installing solar panels justified by the money saved by going ...

    In favorable locations and under suitable conditions, homeowners can recuperate the cost of installing solar panels. The ... Read Full Answer >>
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    Running a solar-powered home with energy that is natural or off the grid has several environmental benefits. By using solar ... Read Full Answer >>
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    Companies that stand to benefit from a shift to off-the-grid living include those that sell alternative energy materials, ... Read Full Answer >>
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    Taking your home off the grid can be an exciting process that results in money saved annually and a sense of accomplishment ... Read Full Answer >>
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