Why Elon Musk Wants a Carbon Tax Explain!?

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Elon Musk Carbon Tax
Elon Musk Supports the Implementation of the carbon tax

The Real Reason Elon Musk is supporting the Carbon Tax.

Elon Musk tweeted his support for Carbon Tax on Twitter and started a huge debate. Got the libertarians riled up, and many call Mr. Musk a hypocrite and only want this to benefit his companies. Before we delve into the real reason Elon Musk truly wants the Carbon Tax implemented, let’s first define Carbon Tax.

What is a Carbon Tax?

A Carbon Tax is essentially a governmental approach to try and limit greenhouse gas emissions. The government sets a price that emitters must pay if they exceed the threshold set. The goal of the carbon tax is to force businesses and consumers to lower their emissions or adopt new technology to avoid paying the Carbon Tax.

The Real Reason Elon Musk Wants a Carbon Tax

Now let’s get into why Elon Musk wants to get the Carbon Tax implemented. Three main reasons come to mind:

  1. He Truly Cares about the environment.
  2.  He thinks this is the best way to speed up renewable energy adoption.
  3. He knows it would tremendously benefit his companies.

Elon Musk Truly Cares for the Environment

Most people probably won’t believe this point, but it’s very evident Mr. Musk care about the environment. He invested and risked losing more than half his fortune in Tesla when most people weren’t even thinking of electric cars. Most analysts predict that Tesla would go bankrupt. However, what ends up happening is that Elon Musk and Tesla have ushered in the electric vehicle’s age. Every major car company is now making electric cars, and every new car company is building an electric vehicle. 

Musk is also putting up $100 million of his own money to fund and award the best Carbon Capture technology. This is purely a goodwill gesture based on his love for the earth, atmosphere, and environment. Also, keep in mind Tesla’s mission statement is still “Tesla’s mission is to accelerate the world’s transition to sustainable energy.”

Elon Musk knows The Carbon Tax is the Fastest way to up Renewable Energy Adoption.

In a capitalist society, capital is king, and profit is the biggest motivator behind the innovation of technology and the adoption of new ideas. So Musk is aware that a Carbon Tax would create direct incentives for companies to adopt greener technology or find cleaner ways to use oil and coal for energy. With the cost of solar panels going down, it’s becoming cheaper to use renewable energy. Throw carbon tax in the mix, companies would not think twice to switch to solar renewable energy to avoid paying tax.

Elon Musk Knows a Carbon Tax would Benefit his Companies.

A carbon Tax forcing the adoption of renewable energy would benefit Elon Musk’s Tesla. Tesla energy division is growing and starting to pay off, with reports saying the business grow 200% in the fourth quarter of 2020. If companies are force to adopt renewable energy to limit or eliminate their carbon footprint, Tesla offers the best solution. They offer solar panels, solar roofing, power wall, and sizeable industrial-grade battery storage for solar. 

Elon Musk knows Tesla is well position to benefit from a Carbon Tax being implemented.

Considering all things, Elon Musk has three critical points to support the implementation of a Carbon Tax.

Source(CNBC, Tech Crunch, Yaad Finance)

By Yaad Finance

Yaad Finance is here to educate and expose as much Jamaicans Yaad and a broad, about financial literacy, investment, real estate and much more.

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