Wynne government reveals unintelligent carbon pricing

The press release begins:

To build on the work already underway to fight the effects of climate change, Ontario is laying a foundation to join the biggest carbon market in North America by introducing new legislation today that, if passed, would ensure that proceeds from the province’s cap and trade system are transparently reinvested into green projects and actions that will reduce greenhouse gas pollution.

There’s no shortage of people railing against any tax, but I’m not vehemently opposed to a carbon tax/price. Stéphane Dion launched his appeal for his Green Shift policy during 2008’s election campaign with:

The Liberal Green Shift plan is as powerful as it is simple: We will cut taxes on those things we all want more of such as income, investment and innovation. And we will shift those taxes to what we all want less of: pollution, greenhouse gas emissions and waste. 

I wasn’t opposed to that – I didn’t know it would accomplish much of anything, but a carbon tax instead of a payroll tax, or a beer tax, is not something I would get too worked up about. However, I have written on two objections to a carbon tax: the inability to price externalities, and the funding of thoughtless spending with revenues.

In stating,  “proceeds from the province’s cap and trade system are transparently reinvested into green projects ,” the Wynne government loses my confidence in their scheme.Read More »

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