There are already plenty of taxes on 'non-green' energy, but the demand curve is inelastic so they make little difference. Nearly every country on the planet has taxes on liquid fuels, for example.
Heavily taxing energy for any reasons always leads to lower economic growth and unemployment. That is because no tax applies globally, so there are always places to move to access the cheapest energy. And usually the places that production one to have lower environmental controls on energy production, leading to a net-worse position for the environment and the people where the production used to be.
Australia implemented the highest 'carbon tax' in the world in 2012. This contributed to the closing of several heavy industry factories within 12-18 months, including aluminum shelters. These factories have all been relocated to places like china and Saudi Arabia, with net-worse outcomes for the environment as a result, and a weaker economy in Australia. A region-specific energy tax is a bad idea because it achieves none of its goals, and measurably makes things worse.
I'm curious about the factories that are supposed to have closed due to Australia's carbon tax and I'd be especially interested to see some evidence if these factories 'relocating'.
Trade exposed heavy industry was largely sheltered from the tax. In fact some argued the free permits were actually going to deliver windfall profits. There was a story recently about the closure of Alcoa's Point Henry aluminium smelter, but the company denied there was any link to the carbon tax.
Heavily taxing energy for any reasons always leads to lower economic growth and unemployment. That is because no tax applies globally, so there are always places to move to access the cheapest energy. And usually the places that production one to have lower environmental controls on energy production, leading to a net-worse position for the environment and the people where the production used to be.
Australia implemented the highest 'carbon tax' in the world in 2012. This contributed to the closing of several heavy industry factories within 12-18 months, including aluminum shelters. These factories have all been relocated to places like china and Saudi Arabia, with net-worse outcomes for the environment as a result, and a weaker economy in Australia. A region-specific energy tax is a bad idea because it achieves none of its goals, and measurably makes things worse.