Overall there may be net positive effects for all generations, never in the history of the humanity have masses sacrificed for the whole of the humanity.
Estimates for the externalities caused by carbon emissions vary widely, but a median estimate is around $100 / metric tonne, so we'll pick that. Gas prices double. Beef, cement and the usual suspects go up in price substantially, although likely gas is the only thing that doubles. Every family gets a cheque in the mail every month for a few hundred dollars (the dividend).
The carbon tariff means that imports from non-cooperating nations go up in price substantially, but imports from nations that have their own carbon taxes or equivalent are not impacted.
What dramatic sacrifices have you made? Normal families will be able to pay their share of the carbon tax with the dividend.
Carbon tax would not be Pareto optimal. nobody is claiming it is are as far as I know and there is no reason to assume it is. Some people would lose big.
Large scale disruptions and frictions when economy adapts. Value of various investments will sink when taxation changes. People lose their jobs, some can't find new jobs with similar wage or with less wages. Even house prices will drop outside accessible public transport. Demand for electric cars would increase their price. For example tourism would suffer dramatically when people stop flying.
People in poor countries would suffer the most because their economies are very CO2 intensive.
Sure there would be losers, but there would also be winners. You claimed "reduce living standards for a generation with several percentages", I claim there would be a balance between losers & winners and the economic impact would be minimal.
The dividend goes a long way to ensuring that the losers are concentrated among the rich and the average poor person benefits.
We can fund them with taxpayer money, which means the average Joe pays, and politicians pick winning (or losing) technologies.
Or we can make the polluters fund them, and let the invisible hand pick the best technologies.
I find the second option much more attractive. And Nobel-prize winning economists agree: https://www.nytimes.com/2018/10/08/business/economic-science...
In a polarized world looking both good and bad sides of generally good thing is seen as being against.
My point is that if we want to make a real change, we can't realistically expect to fix all negative side effects that even the best solution has. If the overall solution becomes politically possible, we must hammer it trough even if we must throw many good people under the bus.
(1) It's not a dream, it's the physical world around you. If you like the way it is then action needs to be taken now.
(2) If you will not not willingly reduce your standard of living for a green world, then you will forcibly have your standard of living reduced by a shittier planet. Massive specie die-offs, expensive food, droughts, more frequent bad weather, heat and violence that comes with hotter temperatures, countries panicking and fighting for resources, people panicking and fighting for resources, etc.