I don't know, it might still be better than the current system.
There are several models, the two of which that strike me as most viable being an income or wealth based tax, and/or an Arbitron or ASCAP-based royalties scheme based on distribution.
There's the age-old problem that high-quality, high-preparation-cost works tend to see vastly less distribution, despite their value to society as a whole. Coming up with a set of tiers or categories of work and determining the funding, and consequent number of authors who can be supported, might be one approach.
And there's still space for direct physical-copy sales where that's appropriate. A book is a nice thing to have and hold, remarkably durable, and can be a treasured possession and an exchange-token in trade. But the present copyright model is clearly an impediment to the dissemination of knowledge, not a promoter of it, as the stated intent indicates.
I've made my own proposal, it's similar to numerous others:
On information and markets:
Nobel Laureate economist Joseph Stiglitz, "Knowledge as a Global Public Good," in Global Public Goods: International Cooperation in the 21st Century, Inge Kaul, Isabelle Grunberg, Marc A. Stern (eds.), United Nations Development Programme, New York: Oxford University Press, 1999, pp. 308-325.