If you are going to tax carbon why is the tax not applied to exports? Does only carbon burned in Canada pollute?
You do have a point there. In that sense, I would prefer that the carbon tax apply directly to the extraction company's profits ratehr than at the consumer end. That way, the tax applies to all carbon extracted in Canada before it even reaches market, domestic or otherwise.
Of course a tax that applies directly to the extraction company and no consumer end tax would create a reverse problem in that Canadian-extracted gas would be expensive but imported gas cheap.
I wouldn't see much of a problem with that though since though I consider climate change to be harmful, I don't consider it to be that harmful. My main concern is with peak oil. So if we leave our own gas in the ground and import others' instead, then I don't mind that.
That would mean a negative balance of trade though, but that's not all bad either. That would push the dollar down and so increase exports of finished products rather than raw materials. In a sense, it would serve as a kind of export tariff on non-renewable resourcs, which could be a good thing.
The opposite is happening in Metro Vancouver
That's because of exorbitant real estate costs. I'm sure it would be even worse without the gas tax. The gas tax creates a pressure on workers to move closer to work or, if they can't afford it, for companies to move out to the suburbs or pay higher wages to make travel costs worthwhile.