Influence Carbon Taxes on Oil Industry in the OPEC Countries

The issue of greenhouse gases has received increasing attention globally because of its meaningful and effective social and economic life. It is considered one of the most important environmental problems that the world is exposed to due to its direct impact on human life in the present and future. The issue of greenhouse gases is no longer a problem. This problem has taken on broader dimensions at the global level as a whole. International and non-international organizations have held many conferences and agreements to confront this problem and reduce greenhouse gas emissions resulting from burning fossil fuels (Coal, Oil, and Gas). Accordingly, environmental conferences and arrangements resulted in unfair decisions for oil-producing countries that could cause them to collapse economically and enter them in a wave of long-term crises. Therefore, this study analyzed the impact of carbon tax policies on OPEC oil demand and how OPEC will decline oil prices too low levels. The study concluded that energy security, reducing oil consumption, financing alternative energy investments, especially coal and shale oil, are the main goal of carbon taxes. The impact of carbon taxes is directly in OPEC oil revenues. When oil prices drop, their influence is more significant because it will increase alternative energy support in the oil-consuming countries.