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The idea of a carbon tax has had a hard time making the transition from theory to practice. This article explains why ambitious carbon tax plans are generally doomed to fail. Past experience shows that individual adjustment costs are perceived as immediate and very high, while benefits are perceived as weak, uncertain, and delayed, which induces a strong opposition from both households and companies. Yet their double dividend—reduced carbon emissions and new jobs—is potentially lucrative. One solution consists of understanding environmental taxation issues in a public finance context and managing this tax as a part of a new social contract. The current period of low oil prices favors such a change, but this window of opportunity could be short-lived.