Monday, July 31, 2017


Canadians are right to be skeptical. As the Fraser Institute showed in a recent study, provinces are implementing carbon pricing in ways that fundamentally violate the three key principles of efficient and economically benign carbon pricing, which are: 1) the tax must displace existing regulations, not be atop them; 2) The tax must be fully rebated to the public as reductions in other distortionary taxes such as income and corporate taxes; and 3) the tax revenues must not be used to distort energy systems by supporting one form of production over another.

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