A carbon tax is a fee imposed on the burning of carbon-based fuels such as coal, oil, and gas. It is a market-based approach to reducing greenhouse gas emissions by putting a price on carbon. The tax is levied on the carbon content of fossil fuels, and it can also refer to taxing other types of greenhouse gas emissions such as methane. The tax is collected from fuel suppliers, who in turn pass on the tax in the form of higher prices for electricity, gasoline, heating oil, and other products and services that depend on them. The purpose of a carbon tax is to disincentivize the emission of greenhouse gases and reduce their amount in the atmosphere, mitigating the adverse effects of climate change. Carbon taxes can generate more immediate environmental and health benefits, particularly by reducing deaths that result from local air pollution. They can also raise significant revenue for governments, which can be used to counteract economic harm caused by higher fuel prices. Carbon taxes are seen as a cost-effective way to reduce greenhouse gas emissions.