Putting a Price on Carbon

Friday, May 15, 2015

Canada’s Ecofiscal Commission has released a report outlining how Canada can quickly and efficiently reduce carbon emissions. Their proposal? Every province in Canada should put a price on carbon. They argue that “strong provincial carbon pricing policies… make good economic sense for every province—and for Canada as a whole. Designing those policies to recognize essential economic differences as well as different provincial priorities is nothing more than practical.” The report echoes the number one policy orientation of the Sustainable Canada Dialogue, Acting on Climate Change.

 

The success of the BC Carbon Tax provides evidence that putting a price on carbon can reduce emissions without adversely affecting the economy. Furthermore, the fact that Quebec and Alberta, with their disparate political cultures and economic foundations, have both adopted carbon pricing, demonstrates that policies can be tailored to the provincial context, achieving carbon reductions efficiently.