Even at a neutral tax, carbon use should go down since it becomes more expensive than non-carbon alternatives. There two obvious knobs: 1) tax rate: $/ton of C

Even at a neutral tax, carbon use should go down since it becomes more expensive than non-carbon alternatives. There two obvious knobs: 1) tax rate: $/ton of CO2 2) wealth distribution: 100% goes to state vs 100% goes back to population or anywhere inbetween. The two knobs are independent. You could crank tax rate of co2 way up while still equally dividing the revenue generated and heavily discouraging co2 emissions.