Dr. Hanson is writing a two part essay on this topic November 28 and 29, 2015, just before the Climate Talks in Paris starting December 1. Here is a link to the first one on November 28.
"...fossil fuels appear cheapest to the consumer only because they do not incorporate their costs to society, including the effects of air pollution, water pollution and climate change. Economies are more efficient if energy prices are honest, including external costs in the price."
"A consequence of this fundamental truth is that climate change can be addressed at no net cost, indeed with economic gain, provided that true costs are added into the price gradually. A simple transparent way to do this is to collect an across-the-board (oil, gas, coal) carbon fee at domestic mines and ports of entry."
"If the funds collected are given in equal amount to all legal residents, the fee is revenue neutral and spurs the economy. This is a conservative approach, because it allows the market to assist change and it does not provide a dime to make government bigger."
Another article By Dr. Hansen provides a shorter summary on this topic titled: "Environment and Development Challenges: The Imperative of a Carbon Fee and Dividend"