Question:medium

Which of the following countries is the first in the world to propose a carbon tax for its people to address global warming?

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This Nordic country was the pioneer, introducing its carbon tax back in 1990, well before others followed.
Updated On: Jul 15, 2026
  • Finland
  • Japan
  • Germany
  • Australia
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The Correct Option is A

Solution and Explanation

Finland is the correct answer.

Back in 1990, Finland became the first nation on earth to bring in a carbon tax, a charge placed on carbon dioxide emissions produced from burning fossil fuels like coal, oil, and gas. The idea behind it was straightforward, make polluting fuels more expensive so that people and industries would gradually move toward cleaner alternatives, helping the country play its part in tackling global warming.

This Finnish move set a precedent that neighbouring Nordic nations, including Sweden, Norway, and Denmark, picked up on soon afterward with carbon taxes of their own. Compare this to Japan, which only rolled out its carbon tax in 2012, more than two decades later. Germany took a different route altogether, relying on energy taxation and later the EU's emissions trading scheme instead of a standalone carbon tax. Australia's attempt at carbon pricing also came in 2012 and did not last long, being scrapped by 2014.

Given how far ahead of the others Finland was, it clearly stands as the first country to propose a carbon tax, making option 1 the right choice.

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