A green economic environment could easily be brought about with the use of revenue-neutral taxation. This would involve changing the way governments collect taxes, raising some and lowering others in such a way that people's income would not change overall.
With Henderson's structural strategy--the Green Economic Environment (GEE)--taxes would be raised on non-green products and lowered on income and retail sales. For example, the total cost of gasoline might go up $200 in a year, but income tax would go down by $200.
In this new landscape, non-green products would be more expensive, but people would have more spending money. In the end, they would be able to buy about the same amount of goods as they did before.
The GEE would shift consumption to greener products and boost demand and markets for environmental goods. Green jobs would be created, and the ones that resulted from fiscal stimulus packages, preserved.
It would provide an economic environment that would promote carbon emission reduction. It could work with or be an alternative to cap-and-trade. Unlike that latter, the approach is applicable to other environmental issues. It is also easily scalable, allowing countries to start with low taxation levels and increase them gradually as desired.
The Green Economic Environment would be a much simpler approach than cap-and-trade. It would be free, less bureaucratic, less burdensome on the industry, and require less management and enforcement (see Structural Solutions vs Cap-and-Trade).
Revenue-Neutral Taxation Is the Perfect Tool for Global Warming and the Environment. Cap-and-Trade Is Not.
If we want to save the planet, we already have the means to do it.