Quebec Introduces Carbon Tax
by Lloyd Alter, Toronto on 06. 7.07
The Province of Quebec has introduced the country's first explicit carbon tax, funds to be used to fight global warming. Natural Resources Minister Claude Bechard (shown here with Premier Jean Charest) says the tax is based on the "polluter pays" principle. "That is not negotiable," the minister said. The tax isn't much at .08 cents per litre (just over 3 cents a gallon) but it will raise C$ 200 million a year, which will be spent on reducing greenhouse gas emissions and public transit. ::Canada.com
Meanwhile, the Green Party of Canada has announced its program for a 12 cent per litre tax, or 45 cents per gallon. Surprisingly, the economists at the Conference Board of Canada agrees with the principle in a new report that says carbon taxes are a fair and effective way to curb consumption of fossil fuels. Glen Hodgson, the conference board's chief economist and author of the report, compares the carbon tax to the effort to end government deficits. It took 20 years, but few politicians now dare promise anything but a surplus.
According to Environmental writer Peter Gorrie, In its pure form, the tax is based on the carbon in coal, oil, natural gas and other fossil fuels. If it's high enough, it sends a clear price signal: All fossil fuels get more expensive. Coal, with the most carbon, takes the biggest hit. Natural gas, the cleanest, goes up the least. The expected result: Consumers shift from coal and oil to natural gas, or, even better, from fossil fuels to non-polluting alternatives.
"It's a very effective and efficient way to achieve changes in behaviour," says Amy Taylor of the Pembina Institute, a Calgary-based research and advocacy group. ::The Star
Thirsty for more? Check out these related articles:
- Will the Next New Deal be Transit-Based? Three Plans to Rescue the Economy and the Earth with Public Transportation
- A Different World: Globalization Teaching Tool Kit Goes Online
- Focus Earth: November 22, 2008: U.S. Tackles Global Warming & Western Water Woes
- Coal's Darkest Hour Comes Just Before EPAs New Dawn
Quebec has also just announced (today) that they are investing fairly massively (for the size of the province) into cellulosic ethanol, with the goal of having 5% of cellulosic ethanol made from biomass waste in the province's gasoline supply by 2011 (or 2012).
This is amazing. A carbon tax is the one thing that pols will tell you would be impossible to implement. Why is Quebec so out in front?
Excellent news. I'm all for carbon tax as long as it's revenue neutral and has safeguards built-in to prevent the poor from suffering. But using the proceeds to invest in eradicating greenhouse gases sounds even better.
I hope more cities follow the lead. More info on Carbon Tax in this very useful site.