[Angostura]

> There's no direct connection between the pipes. We HOPE drivers will drive less.

There are quite a few studies that show that this actually happens. You can have a look at Google Scholar if you want.

Don;t forget, its not just 'will drive less', it is 'will prefer lower carbon alternatives', etc. Fee and dividend basically makes it expensive to pollute and puts cash in consumers' pockets so that they can afford cleaner alternatives.

[oldpond]

I think we should place a royalty on the pipelines, not the pumps. Take 10% from everything that flows down the pipeline, and use that money to drive us into the clean energy age. Where else are we going to get the funds to fix this enormous problem?

The problem with using consumer taxes to fund these things is that the consumer has to consume the planet in order to save the planet. If I don't pay enviro-levy taxes at the cash register, my district can't afford waste removal. If I don't buy enough gasoline, we won't collect enough carbon tax to pay for these wetlands we need to build.

[bryanlarsen]

In the end the consumer pays for everything, so there's very little difference placing the tax on the producer or consumer.