Towards bottom-up carbon pricing in Canada

Takeshi Kawakatsu and Sven Rudolph

Chapter 3 in Innovation Addressing Climate Change Challenges, 2018, pp 33-49 from Edward Elgar Publishing

Abstract: The Paris Agreement urgently needs underpinning by ambitious domestic policies. Greenhouse gas (GHG) pricing is still promising and has been spreading, but implementation barriers are still high. The US and Canada have shown that sub-national pricing is a viable alternative to national action. But, with the politics remaining unpredictable, Canada might rise to be the new leader in market-based climate policy from the bottom up. Against this background we analyze Canadian provinces’ approaches to GHG pricing. We use Sustainability Economics, Public Choice, New Environmental Federalism, and Polycentrism arguments as a basis and then study the British Columbia Carbon Tax and the Québec and Ontario Cap-and-Trade Programs. We mainly show that tailor-made sub-national GHG pricing is a viable strategy and that province programs are comparatively well designed and might even trigger national level action.

Keywords: Economics and Finance; Environment; Law - Academic; Politics and Public Policy (search for similar items in EconPapers)
Date: 2018
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