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Doesn't that ruin the incentive structure? Your cash payments are higher when carbon use is higher.



In this kind of scheme, you don't get what you paid back as cash, you get something more like a dividend of the revenues (possibly just as a non-refundable income tax rebate or something, or as a dividend check given to all adults, depending on the particulars of your region's tax aversions).

So you're actually incentivized to consume less, because you get more out of it if your tax payments are less than your dividend.

Obviously there might be some perverse incentives to like.. causing a global increase in emissions while keeping your own small somehow but those are probably hard to significantly profit from.




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