> Markets are good at fixing things
I'm too old to believe "Markets will fix it" anymore, now I need to see the fine print, and then figure out how the economic game will look after the third play through.
Secondly, this doesn't obviate the need for additional power - you will still be burning coal/etc. You will use it less as a % of total power output. But if your power output increases (which it will, since most of humanity doesn't have power today), you are still looking at a potential increase.
I assume we are not including cars/busses because we expect electric cars to fix that.
However, flight and shipping will remain oil based.
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I love your points and the enthusiasm with which you make them, I think you need to consider your model with bad actors playing it, and you need to consider the self referential aspects of this model.
For example
1) More cheap power means more use of that power. Imagine millions more tamagotchis, or fans which can be kept running nonstop, or other items which are now affordable because power is cheaper.
Case in point - bitcoin miners are today limited by the cost of power. Every efficiency gain in power production, results in more bitcoin miners being added to the system. Every increase in power, results in people dropping out of the system.
2) The economic game is played over several rounds. In the best case scenario, the 3 players (consumers, regulators, producers) are in even tension.
But if producers get rich enough (or even earlier), they can regularly suppress regulators and get away with not paying taxes, polluting without worry and so on.
They can also just straight up reject options like carbon taxes, saying that it will not work for them.
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To make my point clear to you -
The set up of the game is such that no player is in a position to put their foot down! Any player that makes that call is removed from the game
Observe the set up of the game
1) Financers
2) consumers
3) Producers
4) Regulators
5) Politicians
Contracts and obligations guarantee that the interests of financers will be met by producers - in short, the necessity of global growth is backed up by contracts and loans.
The producers of industries, regulators, and politicians regularly ignore many of the primary concequences of polluting industries (the tradgedy of the commons, and this is worse in developing nations which dont have the resources to afford or keep regulators safe)
Any politician which ends up proposing a tax increase, will need massive consumer support - but this is eventually self harming.
Those consumers need jobs, an effective carbon tax would severely harm growth prospects, and thus job creation in an economy.
This means that people will eventually vote this govt out, because they want growth.
FInancers and producers will collude to fund people who support their goals.
Your "foot down" cant happen, because the game is not set up to allow that behavior.
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