One of the most significant environmental problems facing the world's governments recently is global climate change. Global warming and climate change continue to threaten humanity and nature daily. Governments and non-governmental actors have proposed implementing carbon taxes to protect the environment and mitigate the impact of climate change. A carbon tax is a type of tax imposed on the amount of greenhouse gas emissions released into the atmosphere. The tax relates to the greenhouse gas emissions for which the company is responsible. A carbon tax internalizes the negative externalities of greenhouse gas emissions through a price mechanism. A carbon tax is a widely accepted policy tool for reducing greenhouse gas emissions. This tax increases the cost of fossil fuels and encourages people to use renewable technologies. The primary goal of a carbon tax is to reduce the harm caused by greenhouse gas emissions to society and the environment. A carbon tax prevents the environmental damage caused by fossil fuels while also generating revenue for the government. A carbon tax allows individuals to use resources more efficiently and transition to a cleaner environment. Governments are developing policies to guide energy use through carbon pricing. Revenues from carbon taxes are distributed among different economic classes, fostering economic prosperity. Carbon taxes increase the cost of fossil fuels, encouraging companies to switch to more expensive (but cleaner) fuels, thus helping households and businesses reduce their energy use. This study first examines the conceptual framework of carbon taxes and their objectives. It then examines carbon tax practices in countries around the world. Finally, the study evaluates the economic and social impacts of carbon taxes.