Globally, carbon tax has been widely recognised as an economic rationale to increase the allocative efficiency of the economy. The way in which measures on carbon pricing would be implemented, and what other measures would be implemented with them, will go a long way in determining the success of carbon pricing. Regulation of carbon tax is also important, and it is not presently clear how a carbon tax will translate across the value chain and what its effect would be on consumers. The cost of regulation would also be significant in ensuring the efficiency of the regulation.