The Taxing Truth of Climate Change
As Canadian's come to terms with carbon taxes, new reports suggest that tax levels need to be even higher to actually meet our targets.
A leaked document obtained by the National Post outlined what it would really take for Canada to achieve its aggressive climate goals. Canada agreed under the Harper era that Canada would hit a 30 percent reduction in emissions from 2005 levels by 2030. The 2015 document stated that a carbon price of $100 by 2020 and $200 to $300 per tonne by 2050 would need to be implemented to achieve those goals.
So what does that mean for the typical fossil fuels addict? Instead of looking solely at the price of carbon, let’s compare that to something a little more tangible. If you have a car, you buy gasoline (unless you are one of the lucky ones to be driving a Tesla). If Canada used the middle ground and implemented a $200 per tonne carbon tax, how much would the price of gasoline be in Alberta? Using the Government of Alberta’s data, your gas price would go up to 167.2/L and be one of the most expensive jurisdictions in the world. Scary, given its made in Alberta.
Implementing a carbon tax will definitely hit the oil producers, but the trickle down effect will have an even larger impact on consumers. So, is the idea of climate change more taxing than the green benefits we gain from the tax? Or, is a carbon tax really the best solution for Alberta and Canada to meet climate targets?
Photo credit: Wordswag