Reducing Greenhouse Gas Emissions in Canada’s Transport Sector through Carbon Tax
The transport sector is the largest source of Canadian emissions, accounting for approximately twenty-four percent of all emissions in the nation. As a result, transportation is the first sector targeted by Canada through its sector regulatory approach involving discordant policies or approaches. Given the different regulatory policies adopted by Canada, is carbon tax the most cost-effective and efficient emissions reduction policy? This research essay seeks to answer this question by showing the advantages of a carbon tax policy or approach over other policies aimed at mitigating climate change in Canada. Secondary sources such as scholarly articles, reports and articles available online will be utilized to affirm the main argument of this research essay that carbon tax is the most effective climate change mitigating policy in reducing greenhouse gas emissions in the Canadian transport sector due to its cost-effectiveness and the revenue it generates.Reducing Greenhouse Gas Emissions in Canada’s Transport Sector through Carbon Tax
Mccarthy, Shawn. “Significant Hike To Carbon Prices Necessary To Achieve Emissions Targets, Study Finds”. The Globe And Mail, 2018, https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/significant-hike-to-carbon-prices-necessary-to-acheive-emissions-targets-study-finds/article37676745/. Accessed 5 July 2018.
If policy-makers aiming to meet climate objectives are seeking the most efficient and least distortionary way of targeting emissions growth, they should abandon all emission regulations except for a straight, revenue-neutral carbon tax since it is the most cost effective. According to Rivers and Wigle, a price or tax on carbon dioxide emissions in Canada provides a market-based incentive that can aid in inducing emitters to account for the social cost of greenhouse gas emissions in the making of decisions regarding the transport sector. This source is useful to my essay since it elaborates the effectiveness of carbon tax as a policy for decreasing greenhouse gas emissions in Canada’s transport sector. As seen in this article, it is possible for revenue obtained from charging carbon tax to be utilized to decrease other taxes in the economy, increase investment in low carbon infrastructure or offer offsetting rebates to low-income and other households since a combination of a low-carbon fuel standard with other policies such as fuel tax may be an appropriate policy, but is otherwise not cost-effective. As such, this article reiterates the effectiveness of carbon tax as a suitable policy for mitigating climate in Canada through reduction of greenhouse gases emission in the transport sector.Reducing Greenhouse Gas Emissions in Canada’s Transport Sector through Carbon Tax
Sadik, Pierre. “Essentials Of A Carbon Tax For Canada”. Ecojustice, 2018, https://www.ecojustice.ca/wp-content/uploads/2015/01/Essentials-of-a-Carbon-Tax-for-Canada.pdf. Accessed 5 July 2018.
Implementing a carbon tax or carbon pricing is a broadly effective approach to emission reductions in Canada that is superior to other climate change mitigating policies such as voluntary programs or subsidies and is also more economically efficient than regulations. This article is valuable to my research since it outlines the effectiveness of carbon tax as a climate mitigating policy over other policies. According to Sadik, both cap and trade system and a carbon tax are capable of ensuring a critical and sustained reduction in greenhouse emissions in various sectors including transport sector. Nonetheless, as seen in this article, a carbon tax has certain advantages that render it a suitable policy for mitigating climate change in Canada over a cap and trade system. For instance, it is easier to incorporate a carbon tax thereby facilitating a faster introduction by the government. A good example is in British Columbia where a carbon tax was announced and implemented in 2008. If the effectiveness of the carbon tax in British Columbia is anything to go by, Canada as a country can adopt carbon tax as a national policy given its cost-effectiveness and efficiency in reducing greenhouse gas emission from the transport sector while also generating revenue which can be reintroduced into the country’s economy.