"Cap-and-trade" and carbon tax proposals to reduce the amount of carbon dioxide emitted in the U.S. have been in the news recently.  This is good.  It shows a willingness by some in the U.S. to pay more for energy from fossil fuels.  Given the benefits derived and the costs incurred from non-renewable fuels, they should cost more.  The proposals begin to address ways to reduce carbon dioxide emissions and, in some cases, other greenhouse gases.  However, we miss the best opportunity for solving four of our biggest problems by only focusing on carbon emitted.  The better alternative is to simply shift taxes to the products we want to use less of -- non-renewable energy sources.  Income taxes down; energy taxes up in a revenue-neutral fashion.

There are political reasons why cap-and-trade and carbon tax options have gained favor over the more simple method of having non-renewable energy cost more.  They include:

Huge profits for business involved in the market: '£1bn windfall' from carbon trade

Is the tail wagging the dog?  U.S Companies Explore Ways to Profit from Trading Credits to Emit Carbon
It's capitalism-in-action that companies are looking to make a profit in this potential market -- it's what companies do.  The potential problem -- companies invest so much that the decision to create a cap-and-trade market is a foregone conclusion.  Watch for this, and hope it doesn't happen.

How effective and efficient is the trading of carbon credits?  Not very.  EU trading of pollution credits fails on goals
and Europe's Problems Color U.S. Plans to Curb Carbon Gases

Lastly, the "masses are asses" theory of governance would say that cap-and-trade and taxing carbon emissions present a "behind-the-back" way for politicians to reduce greenhouse gas emissions without annoying the public (and possibly losing their jobs).  But, as detailed in the articles above, the cap-and-trade strategy is not working in the EU and, of course, fossil fuel prices do rise.  Americans will recognize this.

The majority of Americans understand that action needs to be taken to solve all four "biggies."  They will find ways to successfully adapt and thrive with higher non-renewable energy prices -- provided they are given the information straight and the price increase is phased-in on a pre-determined schedule.