The tax reform dictates carbon taxation of new car purchases based on Nitrogen oxide (NOx) (heavy) and Field Electron (FE) (more light) emissions, according to Fuel Economy labelling information. The reform also includes a green tax, a US$5 tax per ton of CO2 emitted from thermal powerplants. The carbon tax does not alter the merit order of power generation plantsLaw 20.780 was a comprehensive tax reform approved by the Chilean Congress on the 26th of September, 2014. In relation to the energy sector, this reform introduced an emissions tax for both mobile and fixed sources. First, it dictated carbon taxation for new cars, according to their NOx emissions. Second, defined a carbon tax of 5USD/tCO2 applied to fixed emissions sources. Third, for fixed emissions sources (boilers and turbines) of 50 thermal MW capacity or more, emissions of PM, NOx and SO2 are taxed. These emissions sources are also the ones subject to the CO2 tax.