Using the mechanism the Government has adopted i.e. tax producers/compensate consumers, how will this promote any change in behaviour by either side? Wishful thinking?
The producers that adapt their production methods to release less carbon dioxide, consume less energy or burn less fuel will have a lower carbon tax bill, which can reduce their overall costs relative to a competitor who doesnt make those changes. They may either then reduce the prices charged for their goods/services, giving them an advantage over their competitors in the market, or keep their prices the same and make an increased profit margin, which has its own set of advantages for the business and potentially shareholders.