TIL poor people can't pollute, so their market segment shouldn't be incentivized to cut pollution.
TIL that US car companies won't make smaller cars in the face of different regulations, even though they made larger cars in response to current regulations.
The only way to avoid perversions is to tax the problem directly. The market will adjust to all proxies in unintended and harmful ways.
A disincentive on a thing you don't want makes people choose another thing that you may or may not want.
The only way to avoid perversions is to incentivize the things you want.
Taxing cigarettes led to vaping. Maybe less bad but still a nuisance.