Here's what you need to know about the end of the consumer carbon tax

As of this week, the consumer carbon tax is no more.

After his swearing-in last month, Mark Carney cancelled the tax in his first move as prime minister.

But while that may result in saving a bit at the gas pump, it doesn't mean you'll necessarily save money.

"This was a policy that was actually putting money in the pockets of lower-income households, in most cases," said Kathryn Harrison, a professor of political science at the University of British Columbia.

Here's what you need to know about the carbon tax, and what happens now.

Although the term "carbon tax" has become ubiquitous, the fraught political battle over such policies doesn't always lend itself to a clear understanding of the concept.

In general, a carbon tax applies a surcharge to the production of greenhouse gases like carbon dioxide and methane, which are significant drivers of global warming and climate change.

A carbon tax can be applied to industrial producers who generate greenhouse gases, or to consumers in the form of a surcharge on carbon-based fuels like gasoline, diesel, natural gas and propane.

By putting a price on carbon emissions, governments use market signals to incentivize changes in behaviour that otherwise might not happen, or happen slower than desired — comparable to taxing cigarettes to encourage people to quit smoking.

Aside from a mouthful, it's the federal legislation implementing Canada's carbon pricing system.

Passed in 2018, it brought in two kinds of carbon pricing — one for consumers and one for industry.

The consumer version took the form of a surcharge on carbon-based fuels.

For example, the federal surcharge on gasoline was 17.6 cents per litre before it was removed on April 1.

The industrial carbon tax, meanwhile, remains in force.