How does demand pricing of carbon work in British Columbia?

HACKING THE CLIMATE – B.C. put a price on carbon. What happened next will surprise you (Keleigh Annau, Sustainable Prosperity, Jun. 30, 2014)

Also discussed here: How the Carbon Tax Works (B.C. Ministry of Finance)

Today we review discussions about why and how a carbon tax was implemented in Canada’s most western province which has resulted in its greenhouse gas emissions being 20% lower than the rest of the country – and to almost everyone’s surprise, a public that demands that it continues. A key part of the approach is the return of revenue generated either by direct payments to those on low or zero income or by tax deductions to the middle class- a return of $500 million more each year than what was taxed for the province. Those who have adapted to the higher prices benefit the most in terms of money returned.

By 2020, it is estimated that the emissions avoided are equivalent to those from nearly 800,000 cars each year. By comparison the reductions credited to technological approaches such as electric light rail transit are puny- example in the city of Ottawa that a 43 km LRT system proposed in 2008 would have taken only 2, 400 cars off the road each year (and cost taxpayers nearly a billion dollars). Such a reduction in CO2 also has significant benefits in terms of lower health costs from the reduction of other toxic pollutants emitted by cars.

gas pump

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