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Carbon is not a product in scarcity, Carbon tax is actually a tax on a "product" that is not scarce, but money is , so by imposing taxes we transform pollution to a product with features of scarcity because it is piggybacking on money (tax).
The problems arises for the issue of measuring: what to tax? the carbon during or after production? some products create huge pollution during production and some after production and some in both phases.
Mishkafofer 1 year ago