Comment Re:externality (Score 1) 875
People miss the big picture. By increasing tax on carbon you are not discouraging consumption in the long term. Only scarcity, no use mandates (or a cheaper alternative) would decreases consumption of something as necessary as energy is to people. After a period, since energy needs do not go away, the cost is absorbed into the Economy. Inflation works similarly. Wages have to increase if the costs of goods rise or people fall behind. After a while the people push back (Labor Unions, Revolution, new Elections, etc.) til the Standard of living is not falling. This can easily be seen with Inflation, a US Dollar is worth considerably less than it was in 1929. Yet people make considerably more dollars these days.
Any form of Tax eventually just gets added into the cost of living and people continue like they have before. With a rising population there will be a rising need for fossil fuel. Too bad some folks are unable to understand the simple facts. It is like the myth of Conservation. It looks good individually but in practice it fails to see the whole picture. You just can not escape Economics and human behavior.
I see the Carbon tax as not only misguided but simply a grab for power from those that live in a Leftist Fantasy where Central Government solves all the Worlds ills. Too bad it is Fairy dust and unicorn dreams.