Quote:
Originally Posted by CanSpice
BC has had a carbon tax since July 2008, and our economy has hardly been crushed. In fact, our economy is stronger than most provinces. And our fuel use has dropped by 16% over that time, as opposed to the rest of Canada where fuel use increased by 3%. Here's a nice article about it.
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I believe those numbers are oversimplified (as percentage statistics usually are) and slightly skewed in favor of BCs position. BC's situation is very different from the rest of Canada.
First, that article does not mention that BC's economy is arguably less reliant on fossil fuels than anywhere else in Canada. Tourism, service, natural resources, and real estate are massive economic drivers there, which already makes BC more of an outlier. BC's population is also becoming increasingly concentrated in the Vancouver area, where a larger proportion of people have been giving up driving since they've invested so much into public transit (especially for the Olympics), and also boasts one of the mildest climates in all of Canada (less air conditioning and less heating required in Vancouver than any other major city in Canada). Population growth in other provinces is far less centralized.
Almost all of BCs power is hydro as well (they sell most of their coal to China, which I am uncertain how it is taxed since they aren't burning it in BC). Provinces that have more manufacturing (Alberta, Ontario) or depend on burning fossil fuels for electricity would suffer a much different fate with taxes on carbon than BC has.
Plus, BC has been shedding tens of thousands of jobs the last couple of years, and people have been moving Eastward year after year to find employment for almost a decade because it's getting too hard to make a living there. The cost of living is nuts, and a huge part of that is taxes. I am not convinced that businesses in BC all stay put and just produced less carbon dioxide - business that burned more carbon fuels could simply move to Alberta (or Asia), and businesses that didn't produce CO2 could more easily thrive in BC with their matched tax cut they implemented to offset the carbon taxes. So I think the numbers are skewed that way as well.
I really don't think carbon taxes across Canada would turn out as rosy for the country as environmentalists in BC claim they would.