Which of the following best describes the term ‘Carbon Border Adjustment Tax’ recently seen in the news?
1
It is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question.
2
It is a duty on exports based on the amount of carbon emissions resulting from the production of the product in question.
3
It is a duty on capital gains based on the amount of carbon emissions resulting from the production of the product in question.
4
It is a duty imposed on companies’ profits based on the amount of carbon emissions resulting from the production of its product in question.