a.  Why is it that a carbon tax is preferred to either a BTU tax or a gasoline tax when the objective is to reduce carbon dioxide (CO₂) emissions?

b. Instead of enacting a carbon tax, assume that Congress decides to provide tax incentives to non–carbon-based energy sources, such as solar and wind power. Would this instrument be cost-effective in reducing CO₂ emissions? 

c. Now suppose that the government chooses to initiate tax incentives, (e.g., a tax credit), for these energy alternatives along with the carbon tax. Would this be a more socially optimal solution? Explain briefly.