Thats not to say I'm necessarily now bullish on Pigouvian tax either:
A carbon trading scheme will be similar to a tax on carbon emissions, except the size of the tax will be determined by the market and the government will receive no tax revenue.
Unless, of course, the states decide to charge stamp duty and the Commonwealth decides to levy capital gains tax on the sale of permits, just as they do on other assets. Then all levels of government will enjoy a massive revenue windfall.
Politicians have announced that Australia's greenhouse gas emissions must be reduced or eliminated completely... Never mind that this will not change global temperatures by even a fraction of a degree.