Also, through its revenue raising features, carbon pricing could be used to reduce other taxes (thus “greening” taxation). It may induce sectoral or even macro-level contraction, it may have short run regressive distributional effects (outweighing at least in perception the progressive longer run outcomes of emissions reduction), it imposes burdens on people who did not contribute to warming. Regressive effects will have to be addressed through offsetting mechanisms (such as: pro-poor price differentiation or subsidized provision to low income groups, or a “carbon dividend” from tax or auction revenues to poor households).