A carbon tax would be more likely to pass on problems to consumers. With the tax being as clear as it is, firms could quite easily appeal to the public and claim that it is the government that is causing them to change prices. Given the inelastic nature of the markets for energy and food, if a number of core companies were to take this action at the same time, then it could simply lead to the government taxing people more for the mistakes and harm that firms cause.  Whilst the public bear some measure of responsibility by consuming the firms’ products, the majority of the cost should be borne by the firm. This is especially true in energy markets where it is impossible for consumers to simply avoid using energy altogether. Moreover, businesses are in a better position to control and improve the efficiency of their operations than their customers are.  Given that a cap and trade system results in a lower loss for firms it is less likely to be passed on to the people instead.