Carbon taxes can curb emissions but squeeze profits in complementary goods supply chains, study finds

Published 05:10 on March 27, 2026 / Last updated at 05:10 on March 27, 2026 / Americas (Compliance Markets & Taxes, LATAM & Caribbean, US & Canada), Asia Pacific (Asia, Compliance Markets & Taxes, Pacific), EMEA (Africa, Compliance Markets & Taxes, Europe, Middle East)

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Carbon tax policies can effectively drive emissions reductions across supply chains, but may simultaneously erode profitability and weaken incentives for deeper decarbonisation in markets dominated by complementary products, according to new academic research.
Carbon tax policies can effectively drive emissions reductions across supply chains, but may simultaneously erode profitability and weaken incentives for deeper decarbonisation in markets dominated by complementary products, according to new academic research.


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