Also, the carbon tax should be “revenue neutral”—that is, the tax should generate no new net revenue for the government. Currently, only 90 per cent of carbon tax revenue is rebated to taxpayers.
“If implemented correctly, a carbon tax can be the most economically efficient way to reduce GHG emissions, so fixing Ottawa’s carbon tax is preferable to other, more costly measures such as increased regulations and subsidies,” said Ross McKitrick, senior fellow at the Fraser Institute and essay co-author.
According to the second essay, Carbon Tax Is Beyond Redemption, the federal government should eliminate the carbon tax because real-world examples show that governments both in Canada and Europe have failed to implement sound, well-designed carbon taxes. Most are not revenue neutral, not imposed uniformly among industries, and remain layered on top of other costly regulations and mandates, negating the theoretical benefits of the tax.
“The lessons from Canada and beyond are clear—carbon taxes may work in theory, but no government has successfully implemented a properly designed carbon tax,” said Kenneth Green, essay author and senior fellow at the Fraser Institute.
Media Contact:
Ross McKitrick, Senior Fellow, Fraser Institute
Kenneth Green, Senior Fellow, Fraser Institute
To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
604-688-0221 ext. 721
drue.macpherson@fraserinstitute.org
