Well first any tax on energy is a tax on industry. The standard of living is higher in countries that use energy. It appears to come down to a rather simple truth, A man with a power driven drill can drill 10 times as many holes as a man with a hand powered tool. With 10 times as much production for the same man hour, the man is able to collect more wages, the country has more products, the standard of living is higher.
Total output of energy, or efficiently is not flat across all fuels. Diesel engines produce an on the ground 30% increase in gas milage [source] A CO2 tax targets diesel, a fuel that is easier to produce than gasoline (should be cheaper) - logic clearly is that a switch from gasoline to diesel would be a step in the direction of using less crude oil … A CO2 Tax blocks this course of action by the free market.
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