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An Exciting Dinner Topic: A Carbon Price!!!Canadian businesses and individuals can dump as much carbon dioxide into the atmosphere as they want--free of charge. We used to think that was OK, but global warming unveiled the limited capacity of the earth’s atmosphere. Putting a price on carbon, through a carbon tax or through a cap-and-trade system, has been widely accepted as the most effective instrument to reduce carbon dioxide—a greenhouse gas. Fears about how such a carbon price might impact the Canadian economy are rampant, so the David Suzuki Foundation decided to clarify how a carbon price could work in a Canadian context. Pricing Carbon: Saving Green –-A Carbon Price to Lower Emissions, Taxes and Barriers to Green  Technology is the result.The report reinforces the many studies that suggest that a price on carbon is the single most effective solution to reduce greenhouse gas emissions. And there would be little impact on the Canadian economy. The federal government must act swiftly to introduce a national carbon price that will lead to deep national greenhouse gas emission reductions by 2020. The report suggests that $50 to $100 billion could be raised by the tax, allowing for up to a 50% cut in personal income tax. See below for more... --Listen to our podcast on Carbon Pricing Putting a Price on Carbon Sweden, German, the U.K. and Norway – some of the strongest economies in the world – have had a price on carbon pollution for years. This price has helped them achieve absolute reductions in their greenhouse gas emissions. More recently, the provinces of British Columbia and Quebec have added their own. Many are now calling for a single national carbon pricing system—it’s simpler, eh? That’s exactly what we recommend in our report. Economy will continue to grow In contrast to the fears that surround such a carbon tax, Pricing Carbon: Saving Green shows that the Canadian economy will not flag. In fact, it will continue to grow. GDP will drop from 1.79 trillion to 1.76 trillion. And if government properly reintroduces that revenue stream into the economy, there will be even less impact: a mere 9/10ths of a per cent. Businesses in Norway took their carbon price in stride and ended up streamlining their operations—the result of a strong economic incentive to reduce their fuel costs. Besides the obvious benefit of reducing pollution and greenhouse gases, a carbon price can help to encourage innovation and efficiency. Canadians would end up paying taxes on polluting activities, which discourages pollution, instead of paying taxes on desirable activities such as employment. Reducing Income Tax and Protecting Low Income Canadians Canadians who reduce their carbon emissions could increase their net income. Because government could lower income taxes, people who reduce their carbon footprint get the tax benefit along with their reduced costs Pricing Carbon: Saving Green also recommends mechanisms to minimize the impact of a carbon price on low-income Canadians. Creating an Innovation Fund We recommend for some revenue from a carbon tax be directed to develop new technology and infrastructure—like wind farms, energy efficient homes and public transit. These alternatives will give businesses and consumers real choices to lower their carbon emissions. Recommendations of the David Suzuki Foundation
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