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Originally Posted by woj
that's true, but
a. it's impossible to calculate this "externality"
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Maybe not calcuate, but there's certainly enough data to base highly accurate models on.
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Originally Posted by woj
b. you are assuming government will actually use the funds for intended purpose
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Yes of course. Might there be corruption? Sure. Might it be spent elsewhere? I hope not. We can hope it gets spent right. But right now, there is none at all, and the cost is our future, of future generations, rising tides, damage, storms, loss of animal and human life, etc etc. All of this can be measured now, and it is extremely expensive.
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Originally Posted by woj
c. you are assuming that what government decides is really the best use of the $$
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No. I'm assuming that the scientists know whats best, and that the governments will listen to the people when it comes to spending it in the right way.
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Originally Posted by woj
so imagine you use 1000 liters of gas per year, and liter of gas costs $1 and you think that all the damage costs another $1 = $2 total
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Ok.
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Originally Posted by woj
with no government involvement you would spend $1000/year on gas, with your plan you would spend $2000/year... so you have $1000/year less that you know for a fact would be spent well, cause you are the one deciding...
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Well, no really, no. Right now, your taxes are spent on schools, infrastructure, Police, Fire, etc. This new tax would be spent on the environment in 2 ways : 1, cleaning up the existing mess, and 2, helping to fund clean energy alternatives. If done right, and assuming there's little or no corruption etc, it can make a big difference.
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Originally Posted by woj
maybe you will take that $1000 and spend it on planting trees in the backyard? maybe you will invest that in a solar panel company? maybe you will put it towards a purchase of an electric car?
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Yes! All of those things can be good too and in fact they are already in place. You might pay that extra $1000, but the government might give you a tax break or refund for investing in solar, planting trees, or buying an EV.
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Originally Posted by woj
on the other hand who knows how the government would spend it? more likely than not, it would be spent foolishly or stolen through cronyism... 
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Of course, and this is a legitimate concern. So if the governments impose a carbon tax and demand that we pay it, its up to us to make sure its spent in the right way.
Cheers!