The myth of a revenue neutral carbon tax

I’ve seen some good reasons why a revenue neutral carbon tax is not possible. I will not debate those. I will say that a household has a certain amount of money. If I need to spend more of that money on gasoline, I will, assuming I can get that money. Giving it to me to offset the carbon tax would do nicely. Hence, a ‘revenue neutral’ tax will not alter behaviour and hence it is useless. That is an hypothesis by the way, not a conclusion.


About John Eggert

A minerals processing engineer in Canada. A cynic by nature, but open to being convinced!
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