Economically, the idea behind a carbon tax is fairly simple. Due to the difference between our private cost (what we pay for a good/service) and the social cost (what we pay plus the indirect costs it has on us and society) We are out of equilibrium. By adding a tax equal to the difference between the private cost curve and social cost curve, the indirect costs are made more direct. In a worst case scenario, the entirety of the tax falls on the consumer; however, even then, the cost to the consumer is equal to what it was before, simply more direct rather than through indirect measures such as pollution and adverse healthy effects. This tax forces society to recognize the cost that it has been paying all along for this good/service. Using the real cost associated, businesses and consumers begin looking into alternative ways to meet the same needs; rather than fossil fuels, now that we see the real cost, perhaps clean energy is cheaper, for example. Implementing a carbon tax, other thigs constant, forces firms and consumers to see the real cost they are incurring in production/consumption, leads us to cheaper alternatives, and results in a more sustainable economy overall