The Bustard’s second rule on carbon pricing:
“In an economy where use of fossil fuels is pervasive, carbon pricing will lead only to inflation.”
Carbon pricing will increase the price of energy intensive products and services. In a pure market, innovators would move in to provide low-carbon products and services at a lower cost. However, because the use of fossil fuels is pervasive, the political and economic power of fossil fuel providers is high. Thus they act to block or slow any attempted competing innovation which would weaken their power.