Yep. A price on carbon is actually the most powerful lever we have to bring down emissions. Very nice visualization when you move the carbon price slider here: https://en-roads.climateinteractive.org/scenario.html?v=2.7....
And you can make it both equitable and politically viable if you use the money from the carbon fee to provide direct payments to households, then combine with a border adjustment to maintain trade competitiveness. https://econstatement.org/
Ultimately we just need something in place that corrects this obvious market failure with as few side effects as possible, and carbon fee and dividend does that. https://en.wikipedia.org/wiki/Carbon_fee_and_dividend
It acts as both an incentive to use less carbon and an easy way to even out the wealth gap.
The problem with the carbon tax systems I have seen most of them are setup in a way not to actually change climate or anything to do with climate change but instead set up to fund unrelated agenda's and often end up being counter productive to the actual goal of reducing carbon emissions / other population.
This also addresses the other concerns you pointed out below. The dividend helps to both (a) allow you to invest in improving your energy efficiency or (b) soften the blow where you can't. You may remember the Yellow Vest movement when France tried to apply a carbon tax. If France had given money back to the people, they probably would have had a lot more success with it.
That can not be said for others. Carbon Tax's on power generation and home heating have the nasty impact of being very regressive impacting the poorest among us disproportionately
We need to improve Alt. Energy to make it cost competitive with Fossil Fuels, and not by artificially raising the prices on Fossil fuels which harms the poor.
Carbon Tax systems also end up not actually reducing carbon, but instead allow "trading" of carbon heavily producers with monopoly lock in can simply gouge their customers with higher prices to pay for "offsets", it is akin to wealth redistribution but rather with carbon
> Carbon Tax systems also end up not actually reducing carbon, but instead allow "trading" of carbon heavily producers with monopoly lock in can simply gouge their customers with higher prices to pay for "offsets", it is akin to wealth redistribution but rather with carbon
You're confusing carbon taxes with cap and trade and carbon credits. There are no pollution permits to trade under a typical carbon tax regime. Please check your facts before sharing inaccurate information.
It’s another short run vs long run tradeoff. Fossil fuels brought and bring us immense short term benefits. But increasingly the benefits now will lead to larger costs in the future, both in adaptation and also in attempting to reverse the costs by taking co2 out of the air.
The best solution would be to bring future costs into the present and charge for co2 emissions. That way the truly valuable uses could still happen and the more optional uses of co2 would be discouraged.
This article is talking about building for the next few decades, but the non-stationarity problem will only grow if we keep emitting.