Tuesday, August 27, 2013
New Study Shows British Columbia Carbon Tax is a Success Story – Both Environmentally and Economically!
The British Columbia carbon tax is now five years old, and a new academic study from the University of Ottawa (link here) provides pretty persuasive evidence that it’s working! BC’s use of fossil fuels has dropped much more rapidly than that of any other province, while its economy (in GDP per capita) is holding its own. In fact, because the carbon tax is offset against other taxes, BC has the lowest income tax in Canada.
This objective evidence of success is corroborated by a much more subjective indicator: provincial politics. As I pointed out in a previous posting (here), the carbon tax is notable for not becoming an issue in the last general election.
As I have also suggested (here), the carbon tax should be put on the table as a possible partial solution to future transportation funding in this country. That’s a different proposition from the revenue-neutral BC approach, but could have many of the same benefits – not to mention raising much needed transportation revenue.
Definitely good news from north of the border!