^^^^ The poor get a tax rebate ( they produce very little GHG's compared to the wealthy ) and the rich do not give a fuck. How will a tax alter climate change? Without your links and in your own words, perhaps by buying carbon credits.
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Let’s start at the beginning. Much is being made of the fact that the federal carbon tax will be revenue neutral (it won’t actually be fully revenue neutral, only 90 per cent will be rebated). And indeed, economic theory states that a carbon tax should indeed be revenue neutral. But there’s a caveat here—to offset the harm the carbon tax does to the economy, the tax revenues must be used to reduce existing distortionary taxes such as the personal income tax or the corporate income tax. Rebating the revenues as lump sum rebates eliminates the opportunity to offset the harm of the tax by reducing other distortionary taxes.
Another explicit assumption about optimal carbon taxation is that it must be emplaced in lieu of regulations—not layered on top of them. Layering a carbon tax on top of regulations makes the regulations even more economically damaging. But the Trudeau government shows no indication that it’s ready to make that trade.
In fact, the government plans to implement a “Clean Fuel Standard” that “would incent the use of a broad range of low carbon fuels, energy sources and technologies, such as electricity, hydrogen, and renewable fuels, including renewable natural gas. It would establish lifecycle carbon intensity requirements separately for liquid, gaseous and solid fuels, and would go beyond transportation fuels to include those used in industry and buildings.”
That does not sound much like a swap of a carbon tax for regulations.
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Let’s start at the beginning. Much is being made of the fact that the federal carbon tax will be revenue neutral (it won’t actually be fully revenue neutral, only 90 per cent will be rebated). And indeed, economic theory states that a carbon tax should indeed be revenue neutral. But there’s a caveat here—to offset the harm the carbon tax does to the economy, the tax revenues must be used to reduce existing distortionary taxes such as the personal income tax or the corporate income tax. Rebating the revenues as lump sum rebates eliminates the opportunity to offset the harm of the tax by reducing other distortionary taxes.
Another explicit assumption about optimal carbon taxation is that it must be emplaced in lieu of regulations—not layered on top of them. Layering a carbon tax on top of regulations makes the regulations even more economically damaging. But the Trudeau government shows no indication that it’s ready to make that trade.
In fact, the government plans to implement a “Clean Fuel Standard” that “would incent the use of a broad range of low carbon fuels, energy sources and technologies, such as electricity, hydrogen, and renewable fuels, including renewable natural gas. It would establish lifecycle carbon intensity requirements separately for liquid, gaseous and solid fuels, and would go beyond transportation fuels to include those used in industry and buildings.”
That does not sound much like a swap of a carbon tax for regulations.
