What’s in it for a developing county to not defect? I think to make this work, you need transfer payments from developed countries to developing countries and to have those payments tied to effective carbon taxation.
For that matter, we probably need transfer payments here in the US. Put another $5/gallon of taxes on gasoline and you smack the working class hard. Do that and give every individual (literally everyone) who files a tax return 1000 gallons worth of the tax. Commit to reducing the gallon subsidy by 25 gallons per year per person and increasing the tax by 5% per year for the next 20 years. Evaluate every 5 years and see how you’re doing towards your goals. At the end, you’re taxing gas about $10/gallon in today’s money and subsidizing everyone $5K (in today’s money) to cover some of the increased costs of goods and transport, but giving a painful signal at the pump to incent minimizing gas consumption.
I’ve thought about those numbers for five minutes. Undoubtedly, better numbers can be chosen, but I think we’re going to have to give money in one motion and take it away in carbon taxes in another in order to be able to implement carbon taxes steep enough to change behavior.
