Efficient Carbon Tax
The Shape of Effective Carbon Taxes
The intent of carbon taxes on fuels is to lower the consumption by at least the same ratio, let's say 10%?
BOTTOM UP: Carbon Tax on Retail to ConsumersCase #1: Bus from Vancouver to Calgary (970 km)
At 90% of the distance (873 km), the bus stops, and the driver tells everyone to get off and walk the remaining 10% to Calgary (97 km). Would this make any sense?Case #2: Pick up truck brings materials to jobsite
The contractor will park his load as close as he can to drop off 1/2 ton of supplies. He won't walk it to the job site. He will pay the tax and burn the gas.
Other Truck: Food, Supplies, Cement, Garbage, ... that must go all-the-way to assure delivery.In all cases the consumer does not really have a choice
If the consumer can abstain, then fine. Otherwise they are not given a course of "Action".
TOP DOWN: Carbon Tax on Wholesale: Producers, ImportersTax on Wholesale with Carbon Credits for Sequestration
Wholesalers would be responsible for the same amount of tax as on retail, but with scale to invest in carbon farming and sequestration, to acquire credits that represent results on the net removal of CO2.
Carbon fuel producers could pass part of the tax break on to consumers, favoring their fuels in the retail market (lower price because less tax at the pump).
Energy Companies can actually make extra profits, by getting involved in projects that bury biocarbon as an agricultural amendment, and picking up as many carbon credits as they dig up carbon (making their investors more confident with their carbon assets).