Just curious, How do you folks propose accurately pricing the externalities of air or water polluting industries.  How do you price increased asthma rates (and the value lost in a persons life due to it), cancers, ect.  Never mind the increasing probablility of anthropogenic factors in climate change and the loss of utility to individuals that creates?  Is the solution to just get rid of regulations and (here in the US) be careful with matches while you are out boating in case you accidentally light the water on fire? http://en.wikipedia.org/wiki/Cuyahoga_River

According to the law, the government must show how all of the income received from carbon tax flows back to individuals and businesses in a form of tax reductions. To ensure this, by law the government must table in the Legislature an annual plan that clearly outlines how exactly the money taken from carbon tax revenue will be returned to taxpayers in cut taxes. These reductions will attract new investments, create jobs and finally put more money in people's pockets. And I would really like us to continue taking benefit from tax reductions funded entirely by the revenue-neutral carbon tax. Hope some day we will.