The Cost Of A Carbon Tax Or Cap And Trade System

Stewart Elgie, a University of Ottawa law and economics professor and chair of the green economy think-tank Sustainable Prosperity suggests that British Columbia’s per-capita fuel usage had fallen more than 4 per cent compared with the rest of Canada and its economy (Ebner, McCarthy, 2011) Evidently it is reducing the amount of green house gasses emitted by fossil fuel use. However this is not the concern many had with the introduction of the tax, but the concerns were focused upon the externalities caused by this and the effects it would have on the economy. Three years since the carbon tax introduction and the Provincial level of GDP has remained approximately the same, (Greenery in Canada: We have a winner) With the provincial level of GDP remaining around the same, this suggests that at the very worst the carbon tax has had no negative effects to the provincial economy. Furthermore the tax also promised to remain carbon neutral and promised to cut corporate and private income tax. British Columbia has become the province with the lowest income tax regime and the lowest corporate tax regime (Greenery in Canada: We have a winner). Although the carbon tax is being praised by many, it still faces concerns as many still argue the ineffectiveness of the tax and what that means for the province.

For example, under a cap-and-trade system, a company with large carbon emissions might pay $1 billion dollars upfront for a high cap, or pay almost $2 billion under a carbon taxing system. With our Cap-and-Tax program, a company might pay $500,000 to get a high cap on their emissions, then pay $750,000 in gas taxes. The company doesn’t have to pay a massive amount upfront, and doesn’t pay as much to carbon taxes. This system will make large carbon taxes more manageable for struggling companies, and save companies money from carbon

For the last two decades, the increased use of fossil energy caused the environmental problems. The evidence of global warming, like drying rivers, extinction of species, melting of glaciers, became more often around the planet. The climate change became a threat to healthy environment and prosperity of humanity and wildlife, and the world community started searching for solution to combat climate change. In 2008 British Columbia introduced carbon tax on greenhouse gas (GHG) emissions to reduce global warming. Starting from $10 per tonne of CO2, the price was increasing annually till it reached $30 per tonne in 2012. During that period British Columbia was reducing harmful emissions and improving economy comparing to the rest of Canada. However, since the price rise on carbon stopped in 2012, no improving changes in cutting emissions, economy, and overall quality of life have been noticed. In this essay I will persuade that British Columbia should continue gradually increase price on carbon tax to the level where it will significantly cut the use of dirty energy, provide enough investments into the green projects, and support low-income families.

Replace Cap & Trade Carbon Tax with environmentally responsible initiatives which reinvest revenue in Northern Ontario, a Carbon Tax placed on imports from excessive carbon producing countries of 10%.

The issue of carbon emissions is an important one not only from an environmental perspective but also an economic one. While reducing carbon emissions is an important one for the health of human beings as well as that of the environment, the larger question is what type of policy strategy is best for both reducing such emissions which might have an impact on efforts to mitigate the effects of pollution on climate change. While ther are options to consider which does not rely on economics-- technological or output standards achieved by command and control regulations--they are often fraught with political resistance by industry because they do not allow industry to make any choices or play a role in solving the problem of

Electricity generation is Canada's fourth-largest source of greenhouse gas. When it comes to controlling the emission that comes from electricity generation; most provinces in Canada are already opting out of the coal phase to provide cleaner energy. The burning of firewood to create energy releases CO2 into the atmosphere thereby introducing more greenhouse gases into the atmosphere.therefore introducing approaches to electricity such as increasing the amount of electricity generated from renewable sources; connecting clean power with places that need it and modernising electrical system could bring Canada to its goal by at least 5% to 15%. New rules that help to control emissions from an electrical sector that is burning natural gases should also be implemented. the government Could also control greenhouse gas emission by mandating the carbon pricing policy. Carbon pricing charges industries and corporations that emit CO2 for their emissions. This limits their emissions by instituting a price charge and encourage companies and consumers from burning fossil fuel and find alternative ways that are efficient for their business. Carbon pricing has been known to be the best tool in reducing greenhouse gas emissions since most of the gases released into the atmosphere are carbon. Carbon pricing helps to fight climate change and it provides job opportunity in creating clean energy. the growing population is also a discussable topic in climate change that could be really hard to control due to the fact that as the population increases; the demand for products that release this toxic gases would also increase. The government could control this by finding alternative ways to produce these commodities without introducing so much carbon or methane into the

Cap and trade is a system aimed at diminishing the rate at which carbon is emitted into the atmosphere by creating an economic system based on meeting a certain minimal threshold or paying low-emitting companies for the right to emit in their place. For example, if company A only emits half of the emissions cap, that company can sell (or trade) the remaining credits to company B, should company B choose to emit one-and-a-half times the cap. A main objection to the cap and trade system is that it is not a strong enough means by which to curb emissions of fossil fuels and is inferior to specifically stronger carbon taxes. While initially appealing, the notion of simply strengthening carbon taxes fails to properly stifle carbon emissions and to adequately incentivize “green” development in comparison to the cap and trade system, preventing carbon taxes from occupying a central role to mitigate carbon emissions.

Although the Abbott’s government has an intention to subdue regulatory constraints on businesses by repealing the carbon tax, recently the senate has voted to block carbon tax repeal legislation which was convicted as ineffectiveness and high costing (Griffiths 2014). As a result, the carbon tax remains relatively high at a price of $24.15 per tone of CO2e Rio (Tinto Coal Australia 2011) which cost Rio Tinto $36.3 million in the last fiscal (Rio Tinto Coal Australia 2013), representing a “big government” trait. Attributing to the

First we should understand how the carbon cap and trade system came about. The system of carbon cap trade used to be known as ‘emissions trading’, the alliance of free-market republicans and renegade environmentalists got the system adopted as national law in 1990 as a part of the Clean Air Act, to control the power-plant pollutants that cause acid rain, which is triggered by vast clouds of sulfur dioxide

In the spring of 2015, the premiers of Ontario and Quebec met to discuss to possibly introduce a carbon pricing mechanism in hopes of limiting the negative externalities associated with their industries. The agreement would lead to the imposition of a limit on emission caused by fossil fuels. Similarly, British Columbia has had a long history of imposing carbon tax as a method of punishing behaviours of its industries that cause environmental harms. While there is only limited disagreements between cap-and-trade and carbon tax, the introduction of such carbon pricing regulation has led to a greater debate on the effectiveness of carbon pricing to addressing environmental issues without harming the economy. While environmental groups and supporter

In Australia, there is an emerging consensus that the government should take further actions to help mitigate and combat climate change. The current most accepted policy by government is the introduction of a carbon tax followed by an ETS in 2015. However we are focusing on the carbon tax in this essay and not the ETS. Here is a brief explanation of the dynamics of a carbon tax. A carbon tax is a tax on energy sources, which emit carbon dioxide (Co2). Therefore, carbon taxes address the problem of negative externality. Externalities are the subsequent effects when individual production or consumption of a particular good or service imposes costs or benefits on others. Therefore negative externalities are effects, which pose harm to others without their direct interaction (Basic Economics 2011). However, usual market practices and transactions do not reflect these cost and benefits in the prices involved in the transaction, or take into account in their transaction decision. Therefore this is a form of market failure. By imposing a cost on these negative externalities, the hidden cost can be addressed. Ultimately the purpose of a carbon tax is to reduce emissions of carbon dioxide and therefore reduce

In February 2011, the Australian federal government declared a scheme to implement a Carbon Tax from July 1, 2012. Implementing this scheme has generated a controversial debate between Australians. The term “Carbon tax” refers to an environmental tax forcing polluters to pay per ton of carbon which they release into the atmosphere. This essay will provide the economical, social and political implication of carbon taxes, also with its introduction who will benefit and who would suffer.

However, the Gillard government has instituted one fairly radical and controversial policy: the new imposed carbon tax which took effect on July 1, 2012. The tax requires 500 of Australia's top polluting companies to "pay a fixed price, starting at Aus$23 per tonne, for their carbon dioxide emissions for the first three years. The mechanism would then shift

Since the beginning of the industrial revolution machinery and surface temperatures have been on the rise. Some may argue that the increasing temperatures are strictly due to the rise of machinery and less strict efficiency standards. The U.S has been debating what methods are efficient for combating increasing emissions some argue that a carbon tax has many positive impacts some say if one were to be adopted they would need reforms. This paper will dive deep into the the effects of climate of change and whether or not a carbon tax can fully help to decrease these emissions.

Pollution, specifically global warming, is of growing concern to people and governments. It is a controversial issue whose validity is still being debated by scientists. The Kyoto Protocol is an international attempt to address global warming through emissions controls. Traditional neoclassical economic models do not incorporate pollution in rudimentary theories of supply, demand, or pricing, as a result, firms do not consider pollution as a cost of production, which leaves government regulation as the primary method for controlling these externalities. The goal of emissions trading is to allow one business, which can make greenhouse gas emission reductions for a relatively low cost, to sell