Carbon tax in France

Greg Mankiw is pleased that France has proposed a revenue-neutral carbon tax. Tyler Cowen is less sanguine:

In reality, France’s carbon tax is basically just a gasoline tax—and a tiny one at that. The electricity sector, overwhelmingly powered by emissions-free nuclear power, isn’t part of the plan [TC: Duh!], Prime Minister Francois Fillon told Le Figaro. The tax will basically fall on liquid fuels—raising pump prices 3 euro cents a liter (that’s roughly 15 U.S. cents a gallon).

In theory it will be revenue-neutral but most French voters are nonetheless opposed to the measure.

Incidentally, one argument that carbon tax proponents make against cap-and-trade is that a carbon tax is less subject to loopholes and political manipulation. That argument has always been silly; now it is more demonstrably so:

Large CO2 emitters, such as oil refiners and steel makers, will be exempted from paying the new tax. The government will propose special compensations for fishermen, farmers and truckers...

P.S. Not the first backdoor gasoline tax we have seen proposed this year.