trudeau and notley to be schooled

[Oliver88]

Will Trudeau and Notley learn from the Australian real life example of what a carbon tax did to their economy?

Or does their ideology not allow them to learn from a friends mistake?

[chuckChuck]

What about the carbon tax in BC? What was the result?

B.C.’s carbon tax shift works

Stewart Elgie and Richard Lipsey, Special to Financial Post | January 22, 2015 | Last Updated: Jan 22 2:07 PM ET
More from Special to Financial Post
Starting July 1, 2008, B.C. put a tax on fossil fuels.
Les Bazso/Postmedia News filesStarting July 1, 2008, B.C. put a tax on fossil fuels.

B.C. brought in a carbon tax, fuel use dropped 16% while it rose 3% in the rest of Canada

We Canadians hesitate to pat ourselves on the back, even when we do something well. Like B.C.’s carbon tax shift. Around the world, prominent economic authorities, like the World Bank and OECD, and business and environmental leaders have called it one of the world’s best climate policies: an environmental and economic success.

Terence Corcoran (a climate change skeptic) and Philip Cross don’t agree. But their articles in the Financial Post provide an inaccurate picture of the effects of B.C.’s policy. Controlling carbon emissions is a critical issue. Canadians deserve a full and accurate picture of the facts, so they can draw their own conclusions.

First some background. Starting July 1, 2008, B.C. put a tax on fossil fuels (which cause greenhouse gas emissions). It started low and rose annually, reaching today’s $30/tonne (about 7 cents a litre of gas) in 2012. Revenue neutral by law, the proceeds from the carbon tax are matched by cuts in other taxes (like income tax). Now to the results.

B.C.’s personal and corporate income tax rates are now among the lowest in Canada

The tax covers most types of fossil fuels. Since it came in, B.C.’s total use of those fuels has dropped by 16.1% (2008-13). By contrast, in the rest of Canada fuel use went up by 3% over that time. B.C.’s dramatic drop since the tax marks a big change from the previous eight years (2000-2008), when its fuel use was actually rising slightly compared to the rest of Canada’s. (These results reflect the latest available Statistics Canada data, and were published in a leading research journal.)

Cross and Corcoran don’t dispute these powerful overall results. But they suggest that a big explanation was B.C. motorists buying gas in Washington State. While cross border shopping did increase after 2008, mainly due to the rising Canadian dollar, this explains only about 1% of the 16% decline in B.C.’s fuel use since the carbon tax, according to two different researchers. (It’s common sense; only a small fraction of all B.C.ers would endure the time and cost of a border-crossing to save a few dollars on gas.)

Even if you look just at one type of fuel, motor gas (which is all that Cross and Corcoran do), you see a similar pattern. From July 1, 2008 to June 30, 2014, B.C.’s per capita use of motor gas fell by 0.5%, while in the rest of Canada it rose by 1.6%. (Cross and Corcoran give different figures, probably because they look at B.C. gas use since January 1, 2008 – six months before the tax even started.)
Related

Terence Corcoran: No B.C. carbon tax miracle on 120th St.
Philip Cross: Carbon tax ‘magic’ is sleight of hand

Moreover, B.C. significantly outperformed the rest of Canada on each of the fuels covered by the carbon tax, including home heating oil and natural gas. This consistent result across all fuel types is strong evidence that the policy is working well. And it further debunks the cross-border shopping argument (people aren’t hauling their home-heating oil tanks to Washington).

As for the economy, B.C.’s GDP has slightly outperformed the rest of Canada’s since the carbon tax began. This makes sense. BC simply raised taxes on pollution and lowered them on income. Since 2008, the province has cut income taxes by almost $1 billion more than it has taken in carbon revenues – so taxpayers are ahead overall. B.C.’s personal and corporate income tax rates are now among the lowest in Canada, making it an attractive place to do business.

Yet Cross argues (without evidence) that it is “a fantasy” to think we can reduce fossil fuel use (and greenhouse gases) without harming the economy. This is a bizarre claim. Canadians know from everyday experience in their homes and businesses that there are many economically sensible ways to conserve energy and reduce fuel use – like switching to fluorescent light bulbs, or fuel efficient cars and furnaces.

If putting a price on carbon is such an economically bad idea, why is it being recommended by the Canadian Council of Chief Executives, the World Bank, and the CEOs of major oil companies?”

Certainly, more analysis can be done to better understand how much of B.C.’s big drop in fuel use has been due to the carbon tax (so far, the evidence suggests most of it). But that it has helped the environment, without harming the economy, seems pretty clear. So let’s move on.

While carbon pricing alone won’t solve climate change, it is an excellent beginning. The real debate is no longer about whether to price carbon, but how to do so most effectively. What price (or emission target) to set? How to buffer the effects on vulnerable households and businesses? And how to use the revenues to maximize environmental and economic benefits? These are the real questions to discuss if we’re serious about making progress on climate policy, and building a clean, prosperous economic future.

Stewart Elgie is a professor at University of Ottawa and Chair of Sustainable Prosperity. Richard Lipsey is professor emeritus of economics at Simon Fraser University and a member of Statistics Canada’s National Accounts Advisory Committee.

[stonepicker]

Former ndp strategist Bill Tielman disagrees with you chuck, the so-called benefits of bc's carbon tax have been highly overstated, take your ndp rose coloured glasses off and look at both sides. All your seeing is bc's propaganda machine trying to put lipstick on a pig.

[Oliver88]

Here is the story in the Calgary Herald:

http://calgaryherald.com/news/politics/aussie-think-tank-delivers-carbon-tax-warning-from-down-under

Aussie think tank delivers carbon tax warning from Down Under

SHAWN LOGAN
Published on: December 5, 2016 | Last Updated: December 5, 2016 5:49 PM MST

It was a Down Under blunder that should serve as a lesson to Alberta as it embarks on its own controversial carbon tax, says a think tank that led efforts to scrap that country’s short-lived climate change strategy.

Chris Berg, senior fellow with Australia’s Institute of Public Affairs, met with Postmedia’s editorial board in Calgary Monday to discuss his own country’s carbon tax experience just weeks before Alberta’s so-called Climate Action Plan comes into force.

“We were told we would lead the world, but it didn’t look like the world was interested in carbon taxes,” Berg said.

“It was, in my view, the most substantial financial debate in Australia’s history.

“At least four party political leaders lost their job over the issue. It cost the Australian economy $8 billion a year for two years, it raised electricity prices by 25 per cent … and contributed to higher prices at the supermarket.”


Australia’s ruling Labor Party introduced the Clean Air Act in 2011, a move critics said broke an election promise not to introduce a carbon pricing scheme. A carbon price of $23 per tonne of emitted carbon dioxide was imposed on the country’s 500 top emitters, though some of the highest emitting companies were granted free carbon units if they were exposed to imports or traded internationally.

Ultimately, Berg said, it was individual taxpayers and smaller businesses facing the trickle down effect of the carbon tax who shouldered the brunt of the financial burden, with little to no impact on global climate change.

“The idea that anything we in Australia could do to make a legitimate impact on climate change was fairly ludicrous,” said Berg, whose IPA held rallies, drafted flyers and drummed up opposition to the scheme.

“It’s easy to say we’re making big polluters pay, but fundamentally these taxes have an effect on individual people — people have to pay these taxes.

“Climate change is a global problem, not a regional problem.”

Two years after coming into force, the incoming Liberal government of Tony Abbot, who’d vowed to axe the tax, repealed the act, killing the carbon pricing plan after only two years.

The first phase of Alberta’s carbon tax is set to come into force Jan. 1, and will impose $20 per tonne of CO2 emissions, not only on emitters but on individuals as well, raising the price of gasoline by 4.5 cents per litre, diesel fuel by 5.35 cents and hiking the cost of natural gas more than $1 per gigajoule in its first year.

Alberta’s carbon tax further expands to $30 per tonne of CO2 in 2018, increasing the price of gas 6.7 cents per litre, eight cents for diesel and an extra $1.52 per gigajoule of natural gas.

Alberta’s government predicts that will mean the average Alberta family will shell out an additional $338 in taxes next year, though a sliding scale of rebates to mitigate the impact is also being created as part of the plan.

The Canadian Taxpayers Federation, which is hosting Berg’s tour of Canada where he’s meeting with media, business and political leaders, has said the impact on the average family by 2018 will be about $600.

Paige MacPherson, Alberta Director of the CTF, said she hopes Albertans will be able to learn from Australia’s disastrous foray into carbon pricing.

“I think the Australian carbon tax example shows that a carbon tax is a lot of pain for little to no gain,” she said.

“It also shows just because it’s going to come into effect doesn’t mean we can’t push back and repeal it.”

slogan@postmedia.com

[furrowtickler]

I propose a sewage tax on any raw sewage dumped into rivers or ocean waters by any Canadian city. If places like Vancouver or Montreal are found guilty , tax's should be imposed on those municipalities. Then the tax's be reallocated to other areas of Canada .
I know it's a bit out there but makes more sense on helping to have a clean prosperous economic future .

[seabass]

Where u farm Chuck?

[sumdumguy]

Nutty professors. I can't believe an economist making comments like this- comments based on emotion rather than science. Makes me ashamed to be an economist. Guess he never took a biology class.

[sawfly1]

i tend to agree , that the carbon tax will be a political albatross .
taking the high road is great as long as we do not have to pay for it .

spending a whole lot of money for something you can not see.
kinda like putting money on a plate in a church.
but if you believe, i guess it is worth it.


Hamloc mexico surpassing canada in trade with US . is that really a big surprise.
globalisation, same as the USA losing jobs and production to mexico
nobody in canada is going to assemble a ford or dishwasher for 9$/hr here.
if that is what they get ?

we are just so lucky here to have resources and a low population
that is what has been saving us so far.

[SASKFARMER3]

Chucky just loves the Carbon Tax. Must have a new liberal job lined up.

[chuckChuck]

I forgot to mention that according to the Fraser institute' survey on the best places to invest in oil and gas, Norway is in the top ten. Norway has a long standing carbon tax. That's right! So how does a country that has a carbon tax get into the top ten best places to invest?

By the way Preston Manning thinks a carbon tax is the way to go as well.

I agree that it it may be that BCs carbon tax is not as effective as stated by some observers. At 7 cents per litre it is not a very big tax and may not have much impact. Having effective ways to measure the impact is very important.

But we all know that high energy prices reduce consumption. As soon as gas prices go really high consumers start looking for fuel efficient vehicles.

I farm in Saskatchewan. Our farm shop and house were designed to be energy efficient with high efficiency boilers and furnaces and lots of insulation. All that investment easily pays for itself.

We also drive fuel efficient vehicles as much as possible. And when we go to rink or the school we don't leave our vehicle idling for hours like many Saskatchewan residents.