Time to put a price on greenhouse gas emissions

subscribe

The time has come for Canada to put a price on greenhouse gases (GHGs) produced by the Canadian economy, the Conference Board argues in a briefing that addresses the issues that Canada's Premiers discussed just recently.

"Greenhouse gases are treated today as though they can be produced and emitted without any cost. Green taxes should be introduced for industries and consumers to establish a visible price for carbon dioxide as a way of slowing the growth of - and then reducing - emissions," said Glen Hodgson, Senior Vice-President and Chief Economist. "A national GHG tax system should be designed to be fiscally neutral through cuts to other taxes."

The challenge, according to Use Green Taxes and Market Instruments to Reduce Greenhouse Gas Emissions, is to set an appropriate GHG emission or "green" tax that encourages producers and consumers to change their behaviour.

As a complement to green taxes, a "cap and trade" system should be implemented for major emitters. Green taxes should be rebated to emitters that use a "cap and trade" system. To help firms adjust, an environmental investment tax credit should be introduced.

A combination of green taxes, other market instruments and efficient regulation at a national level would be a significant step toward sustainability, and it would have the added benefit of strengthening Canada's leadership position in forthcoming international climate change negotiations.

Related News

India's electricity demand falls at the fastest pace in at least 12 years

DELHI - India's power demand fell at the fastest pace in at least 12 years in October, signalling a continued decline in the industrial output, according to government data. Electricity has about 8% weighting in the country's index for industrial production.

India needs electricity to fuel its expanding economy but a third decline in power consumption in as many months points to tapering industrial activity in a nation that aims to become a $5 trillion economy by 2024.

India's industrial output fell at the fastest pace in over six years in September, adding to a series of weak indicators that suggests that…

READ MORE
germany prices

Electricity prices in Germany nearly doubled in a year

READ MORE

new orleans power failure

New Orleans Levees Withstood Hurricane Ida as Electricity Failed

READ MORE

Atlantic grids, forestry, coastlines need rethink in era of intense storms: experts

READ MORE

why-atomic-energy-is-heating-up-again

Why Atomic Energy Is Heating Up Again

READ MORE