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Originally Posted by jrowan
It is applied just not directly on the ticket price as the airline pays the carbon tax.
Pretty simple economics tells us that higher costs push innovation to make things more efficient and cheaper. Just look at computers, they used to cost an arm and leg for a low powered machine but enterprise saw the potential and innovated to make computers better and cheaper. The government is stepping in and applying a tax because it incentives companies to innovate rather than sticking with the status quo. We have done similar things in the past with nitrous oxide to deal with acid rain, and chlorofluorocarbons (use to be used in aerosols) for the ozone. Both times people said it would destroy the economy and be too expensive and yet we found solutions and moved forward.
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So what are this innovations?