The coming federal and B.C. elections could have an impact far beyond our borders, a Vancouver economist says.
“If both the federal and B.C. Liberals lose elections on the basis of the carbon tax, it would take carbon taxes off the table for all of North America, potentially forever,” said Marc Lee, senior economist with the Canadian Centre for Policy Alternatives.
Lee made the comments in a recent post to the Progressive Economics Forum.
Lee, who generally supports B.C.’s carbon tax, notes the federal Conservatives’ attacks on the Liberal Green Shift and the unpopularity of the B.C. carbon tax – North America’s only comprehensive carbon tax.
If voters do reject the federal and provincial Liberal carbon tax plans, “there better be one mightily effective cap-and-trade system to take its place, and the prospects of that seem dim, given the state of the Western Climate Initiative negotiations,” Lee writes.
However, a Seattle environmental think tank is less certain that political opposition to the tax in Canada will affect U.S. policy.
The Sightline Institute’s Eric de Place argues that “revenue-neutral carbon taxes are actually gathering steam in the U.S.”
Eric’s piece is worth reading just for his explanation of B.C. politics for U.S. readers:
… the Liberals are the right-of-center party that is currently in power in B.C.; they're the ones responsible for the provincial carbon tax. The NDP – the New Democratic Party – is the left-of-center opposition party, which has criticized the carbon tax. And yes, you heard that correctly: the right is proposing a carbon tax and the left is attacking it.
Tom Barrett is a staff writer for The Hook.
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G West
4 years ago
the Liberals are the right-of-center party
No Kidding.
Maybe re-phrase that one a little. The BCLiberals are the autocratic organ of a single man, Gordon Campbell.
The Campbell Tax is a joke - the funniest part of which being how thoroughly Campbell has pulled the wool over the eyes of a few economists and a lot of lazy enviros.
The reason the left rejects the Campbell Tax is because it is a dishonest and disingenuous attempt to look active and responsible while doing nothing - meanwhile creating added costs (and no benefits) for the people least able to pay higher energy prices.
Tieleman
4 years ago
Good news indeed!
While Marc Lee and the CCPA may disagree, since they appear to love the carbon tax, it would be good news indeed if the two carbon tax proponents went down to defeat.
But the best part is where Stephen Harper calls Gordon Campbell a bare-faced liar when it comes to the BC carbon tax being revenue neutral!
See my blog for details:d
http://billtieleman.blogspot.com/
Frank
4 years ago
"lazy"
Its the key word. Carbon taxes are for those too lazy too contemplate the reality of what we face. Its like a soother for the enviro-guilty. Pay us 2 cents and all the bad things will go away.
The collapse of house prices has done more for the environment than the carbon tax ever will. But that doesn't make for a cuddly bedtime story I guess.
Frank
4 years ago
I have a carbon tax idea!
Since many love the carbon tax I propose one for the whole world. When a child is born the parents immediately have to pay a tax for all the carbon that child will produce in their lifetime.
If the parents don't want to pay the tax they don't have to have the child. This way only the richer citizens of the planet will be able to afford to live here which should make the Jaccard's of the world happy since it was his idea to make Jimmy Pattison and people on welfare pay the same rate.
Mother Nature will show up, collect the tax and having got her money will keep the earth liveable and that way we never have to contemplate real change to our way of life because we'll have a great carbon tax instead.
canadianveggie
4 years ago
Remember the GST
If the carbon tax is a good idea (and I think it is), then I don't think it will go away, even if the Liberals lose both elections. The Conservatives lost the election after they introduced the GST, but even though the Liberals campaigned to scrap it, it stayed - because it was a good idea. I see the same for the carbon tax.
RickW
4 years ago
I am and will be, forever
I am and will be, forever surprised at those (usually middle class 'burb-types) who actually believe simply charging a tax and calling it 'environmental' is making a pronouncement a fait de compli.
Then it turns out that Harper is trying to bribe the same 'burb folk by hinting he will drop fuel taxes.
No wonder the 'burb folk need psychiatric help..........
Grumpy
4 years ago
Carbon tax could be axed for good
Good! and good riddance to it!
Like those who live along the Arbutus corridor who didn't want LRT built along the former rapid transit route and lobbies for a subway under Cambie St. which cost 4 or 5 more than light rail. Who pays the difference? Not those who live along the Arbutus Corridor, but everyone!
werdnagreb
4 years ago
Best thing the BC Liberals ever did
The BC Liberals do not do much good in my mind, but the carbon tax was a bold move and a good one. Even though it is not perfect, it is a step in the right direction.
I disagree with G West saying that only "lazy" enviros support it. Plenty of economists and enviros have supported something like this long before Campbell ever pretended to be green.
We need to make some big changes to really tackle global warming, and if we can't even accept a tiny, miniscule, almost imperceptible tax on something that everyone knows is bad for the environment, then we have no hope at all.
G West
4 years ago
werdnagreb
Well, although I've written extensively on this subject already, perhaps it's time for a little more.
My view is based on the text of Bill 37 and the Regulations and a strong belief that the tax is useless precisely because it is legally revenue neutral.
Furthermore, as any honest economist will tell you, demand for gasoline fuel oil diesel and natural gas tends to be inelastic.
Inelastic goods do not respond to anything but huge increases in cost and the idea that a 7cent increase in the costs of carbon will have any effect on behavior is absurd.
The enormous increases in the cost of fuels for other reasons has, at best estimate, affected consumption by less than 3%. To suggest that the Campbell Tax will do anything about behavior flies in the face of the facts.
Furthermore, several types of horrendous offenders are excluded and, because the government MUST refund all the tax collected (not necessarily to those who need it) the administrative costs of running the program are a black hole.
Therefore, the claim of revenue neutrality is absurd and, since none of the revenues actually go toward conservation, transit, more fuel efficient vehicles and the like - the suggestion that the tax is 'green' is as unconvincing as the rest of Gordon Campbell's claims.
Look, for example, at what the actual cost of sending that $100 cheque to all British Columbians. I assure you it was a lot more than 100 bucks x the current population. In fact, though I don't have the actual number in front of me, I think it amounted to more than $400 million.
Some revenue neutrality...
Furthermore, do some research into the history of regressive Pigovian taxes - because that's what this sucker is.
I support doing something about the environment - please let me know when that happens.
Many of the good and concerned people who ‘say’ they like the Campbell Tax are, in my view, being persuaded by a lot of bumpf from the Bureau of Public Affairs and the goad of a guilty conscience.
You can’t do something by doing nothing – this effort is a do-nothing.