The shocking truth about B.C.’s carbon tax: It works


mentalfloss
#1
It works.

It works.

It works.

It works.

It friggin works.





The shocking truth about B.C.’s carbon tax: It works

Ross Beaty is chairman of Pan American Silver Corp. and Alterra Power; Richard Lipsey is professor emeritus of economics at Simon Fraser University; Stewart Elgie is professor of law and economics at the University of Ottawa, and chair of Sustainable Prosperity.

When Mark Twain wrote, “Never let the facts stand in the way of a good story,” he could have been describing Canada’s current climate policy debate. Prime Minister Stephen Harper repeatedly claims that a carbon tax would “destroy jobs and growth.” Yet the evidence from the province that actually passed such a tax – British Columbia – tells a different story.

The latest numbers from Statistics Canada show that B.C.’s policy has been a real environmental and economic success after six years. Far from a being a “job killer,” it is a world-leading example of how to tackle one of the greatest global challenges of our time: building an economy that will prosper in a carbon-constrained world.

B.C.’s tax, implemented in 2008, covers most types of fuel use and carbon emissions. It started out low ($10 per tonne of carbon dioxide), then rose gradually to the current $30 per tonne, which works out to about 7 cents per litre of gas. “Revenue-neutral” by law, the policy requires equivalent cuts to other taxes. In practice, the province has cut $760-million more in income and other taxes than needed to offset carbon tax revenue.

The result is that taxpayers are coming out ahead. B.C. now has the lowest personal income tax rate in Canada (with additional cuts benefiting low-income and rural residents) and one of the lowest corporate rates in North America. You shouldn’t need an economist and a mining entrepreneur to tell you that’s good for business and jobs.

At the same time, it’s been extraordinarily effective in tackling the root cause of carbon pollution: the burning of fossil fuels. Since the tax came in, fuel use in B.C. has dropped by 16 per cent; in the rest of Canada, it’s risen by 3 per cent (counting all fuels covered by the tax). To put that accomplishment in perspective, Canada’s Kyoto target was a 6-per-cent reduction in 20 years. And the evidence points to the carbon tax as the major driver of these B.C. gains.

Further, while some had predicted that the tax shift would hurt the province’s economy, in fact, B.C.’s GDP has slightly outperformed the rest of Canada’s since 2008.


With these impressive results, B.C.’s carbon tax has gained widespread global praise as a model for the world – from organizations such as the OECD, the World Bank and The Economist. But in the rest of Canada, it is less heralded, which is a shame. Because when you look beyond the political rhetoric and examine the facts, B.C.’s experience offers powerful, positive lessons for Canada.

In particular, it shows that Canada can be competitively ambitious in shaping a 21st century economy that internalizes the real costs of pollution. And that is important, because carbon and other emissions from burning fossil fuels impose heavy costs on us all – as B.C. knows well. The mountain pine beetle infestation, resulting from warming winters, has devastated the province’s interior forest industry, closing mills and costing thousands of jobs. Similarly, air pollution, caused mainly by burning fossil fuels, costs thousands of lives and more than $8-billion a year to Canada’s economy. These problems will only get worse if we don’t get serious about tackling the causes of carbon emissions.

B.C.’s example shows that we can do that, while also building a prosperous economy, if we use smart policies. And it’s not alone in doing so. Both Alberta and Quebec, for example, have also put a price on carbon emissions, using different policy approaches. All three provinces offer instructive, made-in-Canada lessons for spurring clean innovation, advancing energy efficiency, and preparing Canada’s economy to compete with other nations that are already making this shift.

Canada has a history of taking pragmatic, far-sighted policy action to meet global economic challenges, like free trade, deficit fighting or the financial crisis. The shift to a low-carbon economic future poses a similar challenge. With such strong evidence of how to meet it from within our own borders, it’s time to set aside the stories and act.

The shocking truth about B.C.’s carbon tax: It works - The Globe and Mail
 
petros
#2
Quote:

At the same time, it’s been extraordinarily effective in tackling the root cause of carbon pollution: the burning of fossil fuels. Since the tax came in, fuel use in B.C. has dropped by 16 per cent

CAFE is working not the taxes.

You'll believe anything won't you?


Starting this year with 2011 models, the federal government’s fuel-economy standards, which have sat frozen for years, are going to get a big-time thaw—the biggest change since the Corporate Average Fuel Economy (CAFE) law was created in 1975.

The average fuel economy for cars must improve from the current 27.5 mpg, where it has been since 1990, to 37.8 mpg by 2016. The truck standard has to rise from 23.5 mpg to 28.8.

This means cars must improve by 37 percent, trucks by 23 percent. Combined, cars and trucks in 2016 should average 34.1 mpg, up 35 percent from the current 25.3 mpg—a jump of 5.1 percent per year.
 
mentalfloss
+1
#3
That's a nice thought but you haven't shown a direct correlation, whereas the article does.
 
EagleSmack
+3
#4  Top Rated Post
So B.C stopped the climate from changing?
 
petros
+1
#5
Quote: Originally Posted by mentalflossView Post

That's a nice thought but you haven't shown a direct correlation, whereas the article does.

It does? Who stopped buying and who bought CAFE vehicles? Domestic or commercial? Which financial ddemographic saw the drop? Or is it the 12% drop in tourism?


Got the metrics to answer those questions?

Quote: Originally Posted by EagleSmackView Post

So B.C stopped the climate from changing?

Big time.

Strange how the 12% savings equal the 12.6% drop in tourism.
 
#juan
No Party Affiliation
#6
We could always read the evidence, or is that too complicated?

http://climate.nasa.gov/evidence/
 
EagleSmack
+1
#7
Quote: Originally Posted by #juanView Post

We could always read the evidence, or is that too complicated?

http://climate.nasa.gov/evidence/

The Earth is only 650K years old!
 
petros
+2
#8
That's amazing. NASA and NOAA state (paraphrased) "according to interglacial MIS 11 CO2 and temperature don't corellate after a CO2 content far far less than we have now". They also have no clue how the gas cycle works.

Big big facts causing big big problems for alarmists.
 
EagleSmack
#9
And so dependent on govt. funds.

If you're not with the Global Warming crowd... you're against them.
 
petros
#10
I'm anti-interglacial.
 
mentalfloss
#11
B.C.’s tax, implemented in 2008, covers most types of fuel use and carbon emissions. It started out low ($10 per tonne of carbon dioxide), then rose gradually to the current $30 per tonne, which works out to about 7 cents per litre of gas. “Revenue-neutral” by law, the policy requires equivalent cuts to other taxes. In practice, the province has cut $760-million more in income and other taxes than needed to offset carbon tax revenue.


Translation:


 
captain morgan
Bloc Québécois
#12
Quote: Originally Posted by mentalflossView Post

It works.

It works.

It works.

It works.

It friggin works.


... Ummm, it works at taking money outta people's pockets and putting into the general revenue account of the gvt?

What a triumph!


Quote: Originally Posted by mentalflossView Post

The latest numbers from Statistics Canada show that B.C.’s policy has been a real environmental and economic success after six years. Far from a being a “job killer,”

Lots of jobs at Starbucks and vegan restaurants.

Really high paying with great bennies!... Kind of a reflection of BC being a 'have not' province... What a raging success

Quote: Originally Posted by mentalflossView Post

it is a world-leading example of how to tackle one of the greatest global challenges of our time: building an economy that will prosper in a carbon-constrained world.



How much did they accomplish in reversing global warming (shudder)... Have they managed a study on that yet, or are they making it up as they go along like the IPCC?


Quote: Originally Posted by mentalflossView Post

The result is that taxpayers are coming out ahead. B.C. now has the lowest personal income tax rate in Canada (with additional cuts benefiting low-income and rural residents)

Correction: The lowest personal income taxes for incomes below poverty or the national average... It is helpful though as there is a huge number of people earning below the national average.

That's one of the benefits of having an economy based on the service sector

Quote: Originally Posted by mentalflossView Post

and one of the lowest corporate rates in North America. You shouldn’t need an economist and a mining entrepreneur to tell you that’s good for business and jobs.



Those rates were lowered to attract the oil and gas companies to develop the North East part of the province... How ironic is that?
 
IdRatherBeSkiing
#13
Quote: Originally Posted by captain morganView Post

Correction: The lowest personal income taxes for incomes below poverty or the national average... It is helpful though as there is a huge number of people earning below the national average[B]

Yes, if you are middle income you rarely get benefits, you just pay more.

Quote: Originally Posted by mentalflossView Post

B.C.’s tax, implemented in 2008, covers most types of fuel use and carbon emissions. It started out low ($10 per tonne of carbon dioxide), then rose gradually to the current $30 per tonne, which works out to about 7 cents per litre of gas. “Revenue-neutral” by law, the policy requires equivalent cuts to other taxes. In practice, the province has cut $760-million more in income and other taxes than needed to offset carbon tax revenue.

Revenue-neutral is a buzzword that relies on blind trust in the government to not sit on extra money it gets from you and actually pass on the savings to all not just some. It's not neutral if I chose to not buy gas that I don't get a huge tax break regardless of my income.
 
Machjo
#14
Quote: Originally Posted by mentalflossView Post

It works.

It works.

It works.

It works.

It friggin works.





The shocking truth about B.C.’s carbon tax: It works

Ross Beaty is chairman of Pan American Silver Corp. and Alterra Power; Richard Lipsey is professor emeritus of economics at Simon Fraser University; Stewart Elgie is professor of law and economics at the University of Ottawa, and chair of Sustainable Prosperity.

When Mark Twain wrote, “Never let the facts stand in the way of a good story,” he could have been describing Canada’s current climate policy debate. Prime Minister Stephen Harper repeatedly claims that a carbon tax would “destroy jobs and growth.” Yet the evidence from the province that actually passed such a tax – British Columbia – tells a different story.

The latest numbers from Statistics Canada show that B.C.’s policy has been a real environmental and economic success after six years. Far from a being a “job killer,” it is a world-leading example of how to tackle one of the greatest global challenges of our time: building an economy that will prosper in a carbon-constrained world.

B.C.’s tax, implemented in 2008, covers most types of fuel use and carbon emissions. It started out low ($10 per tonne of carbon dioxide), then rose gradually to the current $30 per tonne, which works out to about 7 cents per litre of gas. “Revenue-neutral” by law, the policy requires equivalent cuts to other taxes. In practice, the province has cut $760-million more in income and other taxes than needed to offset carbon tax revenue.

The result is that taxpayers are coming out ahead. B.C. now has the lowest personal income tax rate in Canada (with additional cuts benefiting low-income and rural residents) and one of the lowest corporate rates in North America. You shouldn’t need an economist and a mining entrepreneur to tell you that’s good for business and jobs.

At the same time, it’s been extraordinarily effective in tackling the root cause of carbon pollution: the burning of fossil fuels. Since the tax came in, fuel use in B.C. has dropped by 16 per cent; in the rest of Canada, it’s risen by 3 per cent (counting all fuels covered by the tax). To put that accomplishment in perspective, Canada’s Kyoto target was a 6-per-cent reduction in 20 years. And the evidence points to the carbon tax as the major driver of these B.C. gains.

Further, while some had predicted that the tax shift would hurt the province’s economy, in fact, B.C.’s GDP has slightly outperformed the rest of Canada’s since 2008.

With these impressive results, B.C.’s carbon tax has gained widespread global praise as a model for the world – from organizations such as the OECD, the World Bank and The Economist. But in the rest of Canada, it is less heralded, which is a shame. Because when you look beyond the political rhetoric and examine the facts, B.C.’s experience offers powerful, positive lessons for Canada.

In particular, it shows that Canada can be competitively ambitious in shaping a 21st century economy that internalizes the real costs of pollution. And that is important, because carbon and other emissions from burning fossil fuels impose heavy costs on us all – as B.C. knows well. The mountain pine beetle infestation, resulting from warming winters, has devastated the province’s interior forest industry, closing mills and costing thousands of jobs. Similarly, air pollution, caused mainly by burning fossil fuels, costs thousands of lives and more than $8-billion a year to Canada’s economy. These problems will only get worse if we don’t get serious about tackling the causes of carbon emissions.

B.C.’s example shows that we can do that, while also building a prosperous economy, if we use smart policies. And it’s not alone in doing so. Both Alberta and Quebec, for example, have also put a price on carbon emissions, using different policy approaches. All three provinces offer instructive, made-in-Canada lessons for spurring clean innovation, advancing energy efficiency, and preparing Canada’s economy to compete with other nations that are already making this shift.

Canada has a history of taking pragmatic, far-sighted policy action to meet global economic challenges, like free trade, deficit fighting or the financial crisis. The shift to a low-carbon economic future poses a similar challenge. With such strong evidence of how to meet it from within our own borders, it’s time to set aside the stories and act.

The shocking truth about B.C.’s carbon tax: It works - The Globe and Mail

I'm in favour of resource taxes too, including carbon taxes, precicely because they are more user pay.
 
Count_Lothian
#15
So if it does indeed work , than the naysayers to global warming are still not happy that it does.
Any stretch of the imagination and clever remarks will do for them to continue to back this obscenity.

How can anyone in this day and age can go along with the fake science behind denying global warming and the destruction of our planet due to fossil fuels ?
 
IdRatherBeSkiing
#16
Quote: Originally Posted by Count_LothianView Post

So if it does indeed work , than the naysayers to global warming are still not happy that it does.
Any stretch of the imagination and clever remarks will do for them to continue to back this obscenity.

How can anyone in this day and age can go along with the fake science behind denying global warming and the destruction of our planet due to fossil fuels ?

So what have YOU done to save the planet lately?
 
captain morgan
Bloc Québécois
#17
Quote: Originally Posted by Count_LothianView Post

So if it does indeed work , than the naysayers to global warming are still not happy that it does.
Any stretch of the imagination and clever remarks will do for them to continue to back this obscenity.

How much of an impact has BC's carbon tax had on global warming, errr, climate change?

Any thoughts... Answers? Peer reviewd 'science' that can give us a definitive number?

Yeah, I thought not

Quote: Originally Posted by Count_LothianView Post

How can anyone in this day and age can go along with the fake science behind denying global warming and the destruction of our planet due to fossil fuels ?

Far too many scandals, frauds and cover-ups to believe that the 'science' supporting global warming (or is that climate change?) has any merit whatsoever.
 
Count_Lothian
#18
Quote: Originally Posted by IdRatherBeSkiingView Post

So what have YOU done to save the planet lately?

We have solar panels on my Estate in Muskoka, which serve us well.
We drive a Tesla when we can and a hybrid SUV now that we finally got rid of the old 2012 suv.

We understand that each and everyone of us must do his or her part.
We educate our young and in time honored tradition we offer the gods of life live minnows which we purchase and release in the lake.
 
Corduroy
#19
This doesn't make sense. How can a BC Liberal policy work?
 
IdRatherBeSkiing
#20
Quote: Originally Posted by Count_LothianView Post

We have solar panels on my Estate in Muskoka, which serve us well.
We drive a Tesla when we can and a hybrid SUV now that we finally got rid of the old 2012 suv.

We understand that each and everyone of us must do his or her part.
We educate our young and in time honored tradition we offer the gods of life live minnows which we purchase and release in the lake.

If any of this is true, good for you. Most Al Gore types are the 'do as I say not as I do' model.
 
Count_Lothian
#21
Quote: Originally Posted by IdRatherBeSkiingView Post

If any of this is true, good for you. Most Al Gore types are the 'do as I say not as I do' model.

I assure you The Count is accountable for anything we type here at this facade of public inequity
 

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