The term is usually associated with communist economies. ...But not even Stalin or Roosevelt could come up with a rather exotic tool that can take central planning to a whole new level: carbon taxes.
The reason why it is so powerful is that virtually all market activities produce some type of greenhouse gas, meaning carbon and other equivalents that contribute to warming our planet. Here’s the emissions breakdown by sector in the US according to the Environmental Protection Agency (as of 2014):
Virtually all economic activities (as well as most daily personal affairs in any modern society) produce some type of emissions.
So by putting a cost on carbon any of them, from the most mundane to the most complex, would be impacted.
Entire industries could be impaired with the stroke of a pen.