1) the word “tax” In carbon-tax terrifies people, especially in America. So we get a tragedy of the commons situation with the cost of carbon made into an externality.
2) massive FUD and manipulation of media and environmental efforts to stop awareness of climate change for decades.
Fox News destroyed scientists on TV to discredit global warming.
People have made this happen, and they have gleefully lived without any repercussions - which is why the model has been copied around the world.
Hilariously the oil firms are rebranding themselves as eco firms.
Reducing their quality of life and expectations is what terrifies people. People want their vacations to Tahiti, their SUV, their detached single family homes with backyards and front yards, more children etc.
People know the only way out of this is to reduce consumption - of everything. But obviously few want to, especially when they don’t believe others will chip in and reduce also.
Your final point is describing a collective action problem, but that is solved by simply exposing the full cost of a goods to people.
That is what markets do, very very well. Expose costs via pricing, and let people respond to that information.
If your skin care product packaged by X company is 30% more expensive because its cost of carbon is included, then people will buy the less expensive option and go on their merry way.
“People” meaning as a whole, with sufficient cooperation to enact political change, on a global level, such that the cost of pollution can be priced into products.
But that pricing in will also cause the cost of everything we use to go up, causing a decrease in the amount of consumption (which is the intended effect), but that is an immediate and easily visible “loss” to people.
That last part there is very important. I feel much like this, me personally going ascetic, while all my fellow humans don't give a damn, doesn't help anything. This needs to come from the top, the politicians, with rules, regulations, fees and fines. Thus, I vote for the greenest and most ascetic party there is. But I have little hope left.
Meanwhile, unbeknownst to me, the other bidder would _also_ prefer to work doing good in the world, but takes the highest paying job instead, so they can outbid me.
It’s like saying “my per hour pay rate went up” and assuming your annual take has also increased. That’s only true if your total hours didn’t drop enough to erode those rate gains.
To your point, GDP and efficiency are both increasing but hours per worker are generally decreasing.