Can a Tax Slow Global Warming?

Although factories in the US increase production, provide jobs and stimulate the economy, they can have a very negative impact on the environment.   The carbon emission of these factories is a negative externalitie of production, harming the environment and leading to global warming.  Unfortunately, the executives of these factories only have business on their mind.  They will sell the market clearing quantity and price where their marginal cost of production is equal to the marginal benefit of selling the products.  But what about the social cost of all the harmful carbon emissions?

This article, Progressive Carbon Tax, explains how a progressive carbon tax can internalize the social costs of the pollution.  This would make for a more economically efficient outcome becasue the social marginal benefits would equal the social marginal costs.  As part of the Clean Air Act, the tax would impose the cost on the decision maker, and make the factory executives decide if the pollution is worth the costs, or if they should seek our greener alternatives.  The article explains the various ways in which we could internalize the costs, whether it be a flat tax per ton of carbon released, or a "cap-and-trade" system, where there is a set limit, and based on factories needs, they can buy/sell each other pollution rights.  Any of these policies would reduce the negative externalizes these factories provide.