The point about it not mattering so much whether you’re taxing the supply side or the demand side is that higher prices ultimately lead to lower sales, effecting the producer.
That’s the whole point of a carbon tax — to make carbon unaffordable. While at first that will likely be “regressive” (since most consumption is carbon driven), over time it would lead to decoupling carbon from the supply chain through innovation.
That’s the whole point of a carbon tax — to make carbon unaffordable. While at first that will likely be “regressive” (since most consumption is carbon driven), over time it would lead to decoupling carbon from the supply chain through innovation.