Comment Re:just tax carbon (Score 1) 894
When you drive, you don't pay the full price of driving. The damage you do to the environment is unaccounted for. This is an example of market failure. The government imposes a tax roughly equal to the damage you do through polluting. Then, you are paying the full cost for your activities. Since you now have better information, or better yet, are forced to take into account all of that information, you make different decisions in the market place. That is how a tax would allow the market to decide.