1. https://www.npr.org/sections/money/2013/06/28/196355493/econ...
Citizens get rebates based on income, so poorer individuals get larger rebates as a percent of income and can actually come out ahead even with rising prices due to the carbon tax.
More wealthy citizens will (due to lifestyle differences) pay more in taxes than they get back, but they also have the means to change their lifestyles/make different choices, so they could end up in a spot where they use less carbon and so also come out ahead.
It's a very simple mechanism to modify behaviour and does do in a relatively equitable way.
We could be saved by technological or business breakthrough from an individual, or we could be saved by authoritarianism, but the preference you just described is why we're probably fucked if we hope for a political solution in western democracies (at least the US).