Carbon Tax Isn't The Answer
Jul 04, 2008
A new study shows that Canada has a lot of work to do when it comes to addressing global warming. The Group of Eight (G8) Climate Scorecard, released by the World Wildlife Foundation (WWF) ranks Canada second to last among G8 countries, with the United States coming in last.
Even the best performing of the G8 countries, according to the study, are only about half-way to meeting ideal emissions targets. Canada was singled out as having very high per capita emissions and a steadily increasing trend in total emissions.
One of the main questions of the day is how exactly to address the emissions problem in a manner that doesn’t punish citizens unfairly or have a deleterious effect on Canada’s economy. But so far the only option really being discussed has been that of a carbon tax on fossil fuels. BC went so far as to introduce a 2.4 cent per litre carbon tax on gasoline on July 1. This will rise to 7.24 cents per litre by 2012.
But with the main topic of debate at water coolers across the country being the drastic increases in the price of oil and gasoline, is adding another tax and increasing it further a politically savvy thing to do? None of the major Canadian political parties seems to have come up with any options that don’t further increase the price of fossil fuels for Canadians. Those citizens that need to use a vehicle to commute to work and are being affected by the rising price of gasoline will only be further burdened by the addition of this tax.
But perhaps Canada can borrow a page from American history. When the US decided to address the acid rain problem several years ago, it chose to go after the main source of the problem – the heavy polluters. The Clinton Administration took unprecedented action to reduce smog-causing pollutants from large power plants and industrial sources by requiring that emissions of harmful nitrogen oxides be cut by almost half. Canada also took a tougher approach with companies like Inco by requiring that they install scrubbers, for example.
Why can’t we take the same approach with regard to fossil fuels? Our government could introduce regulations requiring industry that produces larger amounts of carbon emissions – say with the Tar Sands in Alberta – to either reduce their production or pay the price for doing so. Of course every Canadian should think about how they can take steps to leave less of a carbon footprint on the environment. But Canada will get nowhere near any reasonable emissions reductions without taking the difficult step of introducing consequences for the major companies and industries that rely the most on fossil fuels.
A carbon tax is straightforward and understandable, and in some situations could work. But the problem is that it penalizes everyone. Perhaps it is part of a broader strategy in addressing greenhouse gas emissions, but it certainly shouldn’t be the focal point of one.
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