Also a fan of revenue neutral carbon pricing that uses a standard dividend. Pricing externalities does seem like the only realistic way to solve tragedy of the

Also a fan of revenue neutral carbon pricing that uses a standard dividend. Pricing externalities does seem like the only realistic way to solve tragedy of the commons issues like climate change. The weight of regulating individual actions would be impossibly complex. I also think pricing alone isn't sufficient since there are many poor people who can't really make different choices about their consumption even if they want to. Without choice carbon pricing loses effectiveness, since there isn't any way to optimize your costs. The edge case I think about a lot is a poor urban/suburban renter without access to functional public transit. Since they rent they can't take steps to improve the efficiency of their dwelling. They can't rely on transit to get to work due to poor service reliability. Sprawling car-centric development means cycling is dangerous and far, so they must maintain a private vehicle, which is likely to be old and inefficient in order to be affordable. A dividend is unlikely to be sufficient to fundamentally change any of these conditions since this person is likely to be roughly revenue-neutral.