The report goes on to outline how a carbon tax could be used to drive a massive redistributive scheme based on – believe it or not – Iran as a model of success: “The political economy of reform will likely require compensatory transfers to the middle class. In the Islamic Republic of Iran… 80 percent of households received significant transfers—no doubt contributing to the success of the reform.”
It continues: “In the end, the redistributive impacts of a carbon price scheme depend on how revenues from the scheme are used.”