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Eco Fiscal Policies And Carbon Pricing Policies

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In the second evening lecture, Elizabeth Beale spoke about eco-fiscal policies with a focus on carbon pricing. According to Beale, increasing carbon emissions are not only harmful to the environment but also create several negative externalities such as damaging crops and higher health costs. For this reason, carbon pricing would help to shift these costs back to those who are responsible. Beale proposes two options for carbon pricing,, a carbon tax or a cap-and-trade system. A carbon tax is simpler as the government sets a price for greenhouse gas emissions. A cap-and-trade system is more complex as allowable emissions are capped, and then the government distributes emissions permits, which are tradable. Beale claimed that no one system is more superior than the other, especially as the differences between the two get blurred as more jurisdictions are adopting more blended systems. Beale concluded her lecture by looking at the current carbon pricing policies implemented throughout Canada. In British Columbia, a carbon tax of $30/tonne was implemented in 2008, which caused fuel use to drop by 16% from 2008 to 2013. In Quebec a cap-and-trade system was implemented in 2012 that covered 85% of emissions with the goal to reduce emissions to 25% below 1990 levels by 2020. However, despite the action on carbon pricing in these provinces, the Atlantic Canadian provinces have yet to implement any type of policy. As a neoliberalist, I would have to strongly disagree with Beale’s
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