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If a rebate helps people pay for more expensive gasoline, what is the point. The rebate idea assumes that people will have a narrow focus on the tax while not taking into consideration that they are getting money back to pay for it. I would think they would adapt their thinking and not reduce their carbon consumption significantly. Further, at least in the short and maybe medium term, certain consumption is fairly fixed, like home heating, for example. To cut back significantly, one needs to makes significant investments which might be retarded by lack of capital and inertia. California seems to have been relatively successful with their tiered rates for electricity. Those who use little are rewarded with affordable rates and less overall costs, so they have a double incentive to consume less. My guess is that rebates are just an attempt to make the tax politically palatable even though they help negate the impact of the tax. In any event, we are doing nothing and will continue to do nothing because we can't even acknowledge that there is a problem.
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