Quebec's new carbon tax

[iARTthere4iam]

Quebec has announce the country's first carbon tax to be levied on gasoline, diesel, coal, coke, propane etc.. The province is apparently asking that this tax be absorbed by the companies that provide the energy and hope that the cost will not be passed onto consumers. I have just read this and do not understand how this tax is supposed to lower carbon emissions. If anyone can shed some light on their thinking on this please let me know. It seems to me that this new tax is specifically aimed at hurting business that provide energy, will do nothing to curb the usage of carbon energy and will fill the governments coffers with more tax dollars for the general fund. But I may be wrong.

 

[gc]

Quebec has announce the country's first carbon tax to be levied on gasoline, diesel, coal, coke, propane etc.. The province is apparently asking that this tax be absorbed by the companies that provide the energy and hope that the cost will not be passed onto consumers. I have just read this and do not understand how this tax is supposed to lower carbon emissions. If anyone can shed some light on their thinking on this please let me know. It seems to me that this new tax is specifically aimed at hurting business that provide energy, will do nothing to curb the usage of carbon energy and will fill the governments coffers with more tax dollars for the general fund. But I may be wrong.

How much gas would you buy if it cost $100 per litre?
How much gas would you buy if it cost 1 cent per litre?

Besides, is there a better way to reduce emissions?

...and keep in mind that people won't actually be spending more money. They may pay an extra cent per litre, but they will pay less income tax, so unless you're driving an SUV, you won't be paying extra. If you take the bus or ride a bike, you will be making money.

 

[Dreadful Nonsense]

We live in a capitolistic system. Every opportunity to make money will happen. the rich get richer and the poor get poorer. The just figuring out new ways to charge you.

 

[Scott Free]

Quebec has announce the country's first carbon tax to be levied on gasoline, diesel, coal, coke, propane etc.. The province is apparently asking that this tax be absorbed by the companies that provide the energy and hope that the cost will not be passed onto consumers. I have just read this and do not understand how this tax is supposed to lower carbon emissions. If anyone can shed some light on their thinking on this please let me know. It seems to me that this new tax is specifically aimed at hurting business that provide energy, will do nothing to curb the usage of carbon energy and will fill the governments coffers with more tax dollars for the general fund. But I may be wrong.

And yet the real polluters are airplanes, industry and then automobiles. I think it is obvious that this is yet another money grab ridding on the latest scare tactic.

 

[iARTthere4iam]

How much gas would you buy if it cost $100 per litre?
How much gas would you buy if it cost 1 cent per litre?

Besides, is there a better way to reduce emissions?

...and keep in mind that people won't actually be spending more money. They may pay an extra cent per litre, but they will pay less income tax, so unless you're driving an SUV, you won't be paying extra. If you take the bus or ride a bike, you will be making money.

I think the tax is something like .8 cents per liter for gas and .9 cents a litre for diesel. The governmetn is trying to get this tax absorbed by the petroleum companies and not passed onto the consumer.

So, the question should be how much gas would you buy if it costs $1.00/ litre? It the cost goes all the way up to $1.00 (for a massive increase of zero) how will that affect anyone's transportation choices?

 

[gc]

I think the tax is something like .8 cents per liter for gas and .9 cents a litre for diesel. The governmetn is trying to get this tax absorbed by the petroleum companies and not passed onto the consumer.

So, the question should be how much gas would you buy if it costs $1.00/ litre? It the cost goes all the way up to $1.00 (for a massive increase of zero) how will that affect anyone's transportation choices?

The costs won't be absorbed by the petroleum companies. That's not how economics works. Ask yourself why aren't oil companies currently charging $0.99 per litre?

 

[iARTthere4iam]

The costs won't be absorbed by the petroleum companies. That's not how economics works. Ask yourself why aren't oil companies currently charging $0.99 per litre?

Of course the oil companies won't absorb the tax, and it is ridiculous for the government of Quebec to even ask them to. Furthermore, assuming that the petroleum company did agree to pay the tax such a move could have no effect on the amount of gasoline used because there would be no incentive for the users (consumers) to use less as would be the case if the fuel was simply more expensive. So, if we really want people to use less fuel we should want fuel to be as expensive as possible.

 

[gc]

Of course the oil companies won't absorb the tax, and it is ridiculous for the government of Quebec to even ask them to. Furthermore, assuming that the petroleum company did agree to pay the tax such a move could have no effect on the amount of gasoline used because there would be no incentive for the users (consumers) to use less as would be the case if the fuel was simply more expensive. So, if we really want people to use less fuel we should want fuel to be as expensive as possible.

Exactly. That's why a carbon tax is a good idea. I don't know why they would ask the oil companies to absorb the cost (my guess is most people in Quebec wouldn't vote for a party that wants higher prices on gasoline, but they also want to feel like they are doing something about global warming...people can be such hypocrites on this issue). It's likely the government knows that the cost won't be absorbed, but they try to say that it will so that people won't be mad at them for high gas prices.