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Can the world economy keep growing at its current rapid pace while radically shrinking our global ecological footprint? With transformational changes in almost all spheres of economic and social life, it can -- but so far, those changes aren't happening on a large-enough scale to make the transition.

Some oppose carbon taxes on the grounds that they disproportionately hurt poor and middle-class households. But WRI research finds that with the right design, a carbon price could protect poor households from increasing energy prices, support the middle class and spur economic growth.

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