Canada enters 2017 as a carbon-pricing country

As of January 1 2017 a majority of Canadians were living for the first time in jurisdictions with formal systems that put a price on the emission of carbon.

          Canadians for Clean Prosperity summarized that status with the following statement issued January 9:

“The New Year brought a new climate policies across Canada, as carbon pricing came into effect in both Ontario and Alberta on January 1. Along with the existing carbon tax in British Columbia and cap and trade system in Quebec, this means that carbon pricing is now in place in jurisdictions containing over 80% of Canada’s population, economic activity, and greenhouse gas emissions.

          “While consumers in both Alberta and Ontario are seeing costs for gasoline and home heating increase, the impact on households and businesses may not be as drastic as some predictions held. Economists Nic Rivers from the University of Ottawa and Trevor Tombe from the University of Calgary estimate that the average household in Alberta will pay about $200 per year more in direct costs for gasoline and home heating, and about $110 in indirect costs. In Ontario, it would cost an extra $150 in direct and $80 in indirect costs.
          “However, Alberta has only made their system partially revenue neutral with rebates to lower and middle income households, while Ontario hasn’t committed to giving any money back to citizens and businesses to cope with costs. Canadians for Clean Prosperity will be working this year to see both Alberta and Ontario follow British Columbia in restoring carbon revenues to taxpayers.

          “Meanwhile, many eyes are focused south of the border to see what direction the Trump Administration will take on carbon pricing. Despite fears that a Trump Administration may seriously roll back climate policy, it is not clear that Trump will have the policy tools to do so. And there are a significant number of Republicans – the so-called “ecoRight” – who are working to see the President-elect and Congress change their tune on climate. So maybe this new year will be a better one for a cleaner environment and a stronger economy than many are predicting!”