An Overview of the State-Contingent Carbon Tax - Futures Market Mechanism
This was an invited chapter for a book on climate economics that was published in 2013.
It provides a reasonably complete overview of the topic, including an intuitive explanation of the idea, the formal derivation of the tax rule, and an explanation of how the associated futures market would work by turning global financial markets into the world's most powerful climate model.
I released a formal version of my tax proposal as a working paper through SSRN in 2008. A revised version was published in Energy Economics in 2010.