My top recommendation would be to add a carbon tax. The economy works great. Prices are information. If the price is wrong, the economy doesn't do the right thing.[3]
Markets just do things automatically based on pricing. Markets work great, if the pricing is correct. Only when you have a tragedy of the commons, where no price exists, does the market fail to respond—and you wouldn’t expect it to.[3]
We have basically an unpriced externality in the carbon concentration in the oceans atmosphere. It's like if you're not paying for garbage removal. Everyone's gonna throw it out on the street. Garbage removal is “free.” But we all realize, garbage removal isn't free. We have to pay a little bit for this.
Because we're not paying for the co2 capacity of the oceans and atmosphere, we have what in economics is called an unpriced externality. The market is unable to respond to an unpriced externality. If we just put a price on it, the market will react in a sensible way. But because we don't have a price on it, everyone is behaving badly.[3]
Tax it at the point of consumption. It ends up being electricity and gasoline, pretty much.[3]
Taxes on alcohol and tobacco are higher than on fruit and vegetables. Everyone knows fruits and vegetables are good for you and alcohol and tobacco are not good for you. We bias the taxes towards alcohol and tobacco, have higher tax on alcohol and tobacco and lower taxes on fruits and vegetables. That's just sensible. Same thing goes for energy.[3]