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I claim that carbon tax is closer to pareto optimal then no carbon tax, since without a carbon tax the externalities are not accounted for.

Sure there would be losers, but there would also be winners. You claimed "reduce living standards for a generation with several percentages", I claim there would be a balance between losers & winners and the economic impact would be minimal.

The dividend goes a long way to ensuring that the losers are concentrated among the rich and the average poor person benefits.




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