It depends. You could, for example, make high carbon taxes while reducing income taxes or dividending the money back to people. This would let you have more of a carbon blocking effect while keeping government revenues steady.
If you use the money for a specific purpose, then you either need low carbon taxes to avoid radically altering the government’s role in the economy, or you are making a large bet that the government will spend the money well.
Having a large, long run carbon tax will do much to encourage the market to develop alternatives.
I imagine you include deductions, like most tax systems, with actions like planting trees being counted against your emissions. For many businesses that would be a more effective way to spend, and likely more efficient than the government middle man doing the work
If you use the money for a specific purpose, then you either need low carbon taxes to avoid radically altering the government’s role in the economy, or you are making a large bet that the government will spend the money well.
Having a large, long run carbon tax will do much to encourage the market to develop alternatives.