Canada’s Ecofiscal Commission
[Global News] A recent report from Canada’s Ecofiscal Commission has recommended provinces shouldn’t wait for the federal government to come to an agreement on carbon.
The report is also encouraging the implementation of provincially specific carbon taxes that reflect the unique economic structures, emissions profiles and political contexts of different provinces.
[Abstract] This report begins by establishing the significant cost to Canadians of delaying climate policy action. It posits that the question facing Canada today is not “if” greenhouse gas reductions must be accelerated, but rather “how.” The authors conclude that the practical and cost-effective way forward for pan-Canadian emissions reductions is through provincial carbon pricing. Two central issues are explored: (1) why provincial carbon pricing is the most practical route and (2) which details and fundamentals of policy design need to be considered. Drawing on analysis and evidence from economic theory, policy experience (both internationally and in Canada), and from new economic modelling, the report concludes with recommendations for Canadian provinces on an overall approach and key considerations for carbon pricing policy design.