{"id":62873,"date":"2024-04-05T12:46:44","date_gmt":"2024-04-05T19:46:44","guid":{"rendered":"https:\/\/energi.media\/?p=62873"},"modified":"2024-04-05T12:46:44","modified_gmt":"2024-04-05T19:46:44","slug":"axe-the-tax-ok-then-boost-industrial-carbon-tax-on-alberta-saskatchewan-oil-gas-emissions","status":"publish","type":"post","link":"https:\/\/energi.media\/energi-notes\/axe-the-tax-ok-then-boost-industrial-carbon-tax-on-alberta-saskatchewan-oil-gas-emissions\/","title":{"rendered":"Axe the tax? Ok, then boost industrial carbon tax on Alberta, Saskatchewan oil\/gas emissions"},"content":{"rendered":"<h2>Alberta, Saskatchewan emit 48% of Canada&#8217;s emissions. Why not punish the bad actors?<\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s deja vu all over again. After disrupting (destroying?) Canadian public health with relentless campaigns against vaccines and masks, the freedom crowd has glommed onto the federal carbon tax. CPC Leader Pierre Poilievre (again) cozied up to them with his \u201cAxe the Tax\u201d campaign and conservative premiers jumped on the bandwagon for their own cynical political reasons. This is no way to run a country. Or national climate policy. Is there a better way?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Economists have promoted <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/Pigouvian_tax\"><span style=\"font-weight: 400;\">Pigouvian taxes<\/span><\/a><span style=\"font-weight: 400;\"> for a long time. Yes, carbon pricing is the lowest-cost, most efficient way to lower greenhouse gas emissions. Respected academics like Professor Trevor Tombe of the University of Calgary remind us of this ad nauseam.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, economists have also warned that the effectiveness of carbon pricing may be lowered by political opposition. I first came across this argument three years ago while interviewing (see below) Stanford economist Danny Cullenward. Closer to home, energy economist Mark Jaccard has also made the point that many Canadians don\u2019t like taxes, which means policymakers should also use what he calls \u201cflex-regs,\u201d i.e. other tools in the policy toolbox.<\/span><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/share.transistor.fm\/e\/6030db6f\" width=\"100%\" height=\"180\" frameborder=\"no\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<p>Unfortunately, having a rational discussion about adjusting or eliminating the federal consumer carbon tax (there is also an industrial emitters&#8217; carbon tax) is made impossible by<span style=\"font-weight: 400;\"> Poilievre&#8217;s deceptive &#8220;axe the tax&#8221; campaign that is supported by conservative premiers and various self-interested trade associations and astroturf groups.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By deceptive, I mean flat out lies. Only talking about how much Canadians pay, for example, while deliberately ignoring the generous rebates, enjoyed by a large majority of citizens. Or calling for the BC carbon tax to be axed, knowing full well that the program is entirely provincial, dating back to 2007 and a right-leaning government\u2019s adoption of what is commonly considered a \u201cmarket-based\u201d policy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To make matters worse, the \u201caxe the tax\u201d campaign has been embraced by the \u201cfreedom movement\u201d &#8211; the anti-vax, anti-mask, conspiracy theorists and misinformation spewers who occupied Ottawa for three weeks in 2022. A group of them blocked part of the TransCanada Highway west of Calgary on Wednesday.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hidden beneath this outrageous mendacity and the weaponizing of carbon pricing by unscrupulous politicos is a truth, hidden in plain sight, that needs a thorough discussion before Canada\u2019s consumer carbon tax is eliminated.<\/span><\/p>\n<h3><b>Two biggest Canadian emissions offenders lead \u201caxe the tax\u201d<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Alberta generates 38 per cent of Canada\u2019s emissions, while Saskatchewan creates 10 per cent. Two provinces with only six million people out of 40 million, only 15 per cent of the population, are responsible for half of the problem. As of 2020, Canada has the second highest per capita emissions rates in the world thanks to Alberta and Saskatchewan.<\/span><\/p>\n<figure id=\"attachment_62874\" aria-describedby=\"caption-attachment-62874\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-62874\" src=\"https:\/\/energi.media\/wp-content\/uploads\/2024\/04\/Canada-greenhouse-GHGs-e1712345674535.png\" alt=\"\" width=\"600\" height=\"279\" \/><figcaption id=\"caption-attachment-62874\" class=\"wp-caption-text\"><em>Source: Greenhouse gas emissions, Canada, 1990 to 2021 Environment and Climate Change Canada.<\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">By comparison, the two big hydroelectric provinces, British Columbia and Quebec, produce only nine per cent and 11.5 per cent of emissions, even though they comprise 12.5 per cent and 22 per cent of the population. Unsurprisingly, both provinces rank near the bottom in per capita emissions, in part because both have aggressive climate plans. They lead the country in electric vehicle adoption by a long shot, for example. Both punch well above their weight class.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BC and Quebec voters might well ask why they are being punished with federal climate policies while the laggards in Alberta and Saskatchewan oppose even the mildest mitigation efforts? Frankly, the rest of Canada might want to ask the same question.\u00a0<\/span><\/p>\n<h3><b>Punish laggards, reward leaders<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Astute readers will recall that during the last federal election campaign the CPC under Erin O\u2019Toole also called for ending the national consumer carbon tax while retaining, perhaps even expanding, the industrial emitters\u2019 carbon tax.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a question for Poilievre and the \u201caxe the tax\u201d crowd: Do you support the combination of ending the consumer tax while significantly beefing up the industrial tax to significantly drive down emissions from the oil and gas industry in Alberta and Saskatchewan?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is simply a logical extension of the CPC\u2019s own policy plank. And it would enable the Conservative leader to propose an alternative to the Liberal\u2019s promised oil and gas emissions cap, which will layer a cap-and-trade system on the existing industrial tax, a cumbersome idea vehemently opposed by Alberta and the industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If Poilievre and company want to open up carbon pricing rules, it only seems fair that others get to propose different ways of lowering Canada\u2019s stubbornly high (on a per capita basis) emissions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because let\u2019s be very clear that doing nothing about greenhouse gas emissions is not an option. Developed countries like the USA and Europe are electrifying their economies, in part because of the climate crisis and in part because of the energy transition.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One way or another, the low-carbon future isn\u2019t far off. <\/span><span style=\"font-weight: 400;\">Therefore, if Canada is going to weaken climate policy in one area, it must strengthen policy somewhere else.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why not target the laggards, Alberta and Saskatchewan, and make it easier for the large majority of Canadians?\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>Alberta, Saskatchewan emit 48% of Canada&#8217;s emissions. Why not punish the bad actors? It\u2019s deja vu all over again. After disrupting (destroying?) Canadian public health with relentless campaigns against vaccines and masks, the freedom crowd <a class=\"mh-excerpt-more\" href=\"https:\/\/energi.media\/energi-notes\/axe-the-tax-ok-then-boost-industrial-carbon-tax-on-alberta-saskatchewan-oil-gas-emissions\/\" title=\"Axe the tax? Ok, then boost industrial carbon tax on Alberta, Saskatchewan oil\/gas emissions\">[Read more]<\/a><\/p>\n<\/div>","protected":false},"author":3,"featured_media":59902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[2495],"tags":[],"class_list":{"0":"post-62873","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-energi-notes"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Axe the tax? 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