Taxing Emissions, Not Income: How to Moderate the Regional Impact of Federal Environment Policy

Jotham Peters, Chris Bataille (), Nicholas Rivers and Mark Jaccard
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Jotham Peters: Simon Fraser University
Mark Jaccard: Simon Fraser University

C.D. Howe Institute Commentary, 2010, issue 314

Abstract: Canadian policymakers have the policy tools needed to ameliorate the regional economic harm that taxing GHG emissions can cause. A price on GHG emissions will affect Canadian provinces differently, possibly undermining support for a policy that incurs regional transfers of income. The authors recommend returning to the provinces the revenues collected through auctioned emissions permits, so that they may offer personal and corporate income tax relief, all to moderate the regional impact of GHG carbon policy. Allowing provinces to retain the revenues collected from auctioned emissions permits would achieve a greater degree of regional equity than the other policy options.

Keywords: Economic Growth and Innovation; GHG emissions; GHG carbon policy. Canadian federal policy; regional impacts of climate policy (search for similar items in EconPapers)
JEL-codes: H23 Q58 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (23)

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