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).