2 ms·
The usual solution to this is import tariffs for goods coming from any country that doesn't have a similar carbon tax (where such tariff goes away if and when i
by amalcon 5y ago
The usual solution to this is import tariffs for goods coming from any country that doesn't have a similar carbon tax (where such tariff goes away if and when it does happen), and to distribute the revenue from these to offset heating and transportation costs.
Economists have studied Pigovian taxes a lot. There are answers to most of the obvious objections (and answers to those answers, and so on). I happen to think most of macroeconomics is pseudoscientific nonsense. Unfortunately, in cases like this, pseudoscientific nonsense is the best we have.