A carbon tax to me seems like something designed to generate political blowback. The problem is a carbon tax punishes people for decisions they made previously where they didn't have a choice. With the hope that they'll suck it up and find a way out somehow. It's stupid to assume that 'somehow' isn't going to be toss those dicks out on their ear.
Ontario never had a carbon tax, it had cap&trade in the same market as California and Quebec. Most consumers never noticed its introduction. But the new idiots in power certainly made political hay about how they were going to drop gas prices by removing it. Turns out it had almost no effect on gas and utility prices but a huge effect on the province's budget, along with axing dozens of environmental initiatives in the province.
And the federal gov't has now imposed a carbon tax to replace it.
In fact I saw a big drop for a few months, since then the price keeps creeping up. Before DF, I saw $1.25 a liter, after he got in it fell to $0.98 a liter and since then it has slowly increased. Right now it is $1.19 where I am I expect it will be back to $1.25 before winter.
It might be politically unpopular, but it's the only really holistic way I've seen to get the market to prioritize carbon emissions and make the best tradeoffs there.
On the plus side, politically, a large carbon tax would make it more competitive to manufacture locally, since it would become much more expensive to ship things via container ship/air. Globalism is largely a result of the cost of running a global logistics network plummeting.
While true, its also the case that any other way of doing it is economically worse.
The best way to do it is to start the price off low but telegraph that the price is going to go up in the future. Then people know when they need to get a new car/water heater/fridge to get the more efficient model. Probably even more important is industry and investors, they'll know not to invest in subdivisions from bulldozed farmland but instead build denser apartment buildings close to public transportation or to give more money to R&D to make their next model of car/water heater/fridge more efficient.
