The cost of a pollution tax depends on how many ethical objections it tries to solve

This paper models how a pollution tax changes if it tries to address ethical concerns. It turns out, trying to make a pollution tax "fair" can make it five times more expensive.

Pollution taxes are often debated on economic efficiency. This paper shows that the political debate around fairness, equity, and other ethical issues directly translates into the economic cost of the tax. Arguments about "incommensurability" or "commodification" are not just philosophical points. They are arguments about how much money people will pay.