Well, lower taxes on poor people. Increase welfare, subsidize public transportation and other things that help transfer money to people who are hurt by the tax

Well, lower taxes on poor people. Increase welfare, subsidize public transportation and other things that help transfer money to people who are hurt by the tax. "Figure out the best way to produce energy" is not something we can figure out posting on HN, or even in a presidential debate. It is a complex and very uncertain question, but since it is a question of innovation, it is the kind of question that markets are very good at answering. A carbon tax directs the market toward finding out the solution efficiently.