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Lets say it cost consumers $100. After Carbon tax, company gets $20 tax. Price becomes $120. Government says to consumer, here's $20. Consumer and company see
by Joakal 7y ago
Lets say it cost consumers $100.
After Carbon tax, company gets $20 tax. Price becomes $120. Government says to consumer, here's $20. Consumer and company see no difference. Government cost goes up to maintain the scheme.
This is why people say the carbon tax/price must go towards non carbon ressearch/products.
- lodi 7y agoLet's further say that there exists another company that can produce the same widget with fewer emissions, but it costs $110 base price + $0 carbon tax to do so. Now the green company actually has a viable product, and consumers are incentivized to switch to it.
- Joakal 7y agoConsumers still see $100 net pre and post tax. That's why I think the rebates are flawed.