Environmental crisis is one of the governments challenges in the recent century. Governments and
policymakers through plans and policies attempt to overcome challenges in environment area until to
decrease man destructive effects on environment. Controlling economics methods is one of the tools
of environmental degradation reduction. The aim of this study was to estimate suitable green tax on
carbon dioxide emission (carbon tax) in cement industry. Translog cost function, estimated for cement
industry to assess suitable Green Tax. Cost function equations and costs share were estimated with
ISUR systematic method. The Results show all variables were significant in model parameters
estimation, beside the interaction variable of wage cost with maintaining cost. The cost function
determination coefficient show that 79% of total cost variation of cement production determined by
dependent variables in equation. Also according to results, green tax rate on CO2 emission in cement
industry determined was 15 percent. It is suggested environmental protection organization use green
tax as an economics tool to control and decrease environmental pollutions with examination of
country infrastructure and present conditions.