We’ve come a long way in Canada. We have real, working examples of both carbon taxes and cap-and-trade systems that are reducing GHG emissions while maintaining strong economies. Yet the growing consensus around carbon pricing is not yet universal. This essay unpacks carbon pricing in (mostly) jargon-free language. Just the facts.
Research & Reports
Only the Pipes Should Be Hidden: Best practices for pricing and improving municipal water and wastewater services
Well-designed user fees can improve conservation, fund infrastructure, and protect water quality. This report uses five case studies to highlight the progress that Canadian municipalities have made in improving the sustainability of their water systems. It concludes with 10 best practices for designing and implementing user fees for water and wastewater services, based on experience in Canadian cities.
Supporting Carbon Pricing: How to identify policies that genuinely complement an economy-wide carbon price
This report presents a framework to identify complementary climate policies that can support carbon pricing. It provides key considerations for designing and evaluating individual climate policies as well as overall policy packages. Three rationales are presented for additional non-pricing policies: gap-fillers, signal-boosters and benefit-expanders.
We assess the economic and environmental case for biofuel policies in Canada and examine the extent to which biofuel policies have achieved their stated objectives. The report finds that biofuels policies have reduced GHG emissions by 3 Mt per year, however they have done so at a very high cost. Finally, we conclude that low-carbon transportation policies are still needed to complement carbon pricing policies.
More stringent carbon pricing policy leads to greater emissions reductions. This report seeks to provide governments with a common, consistent framework for comparing the stringency of provincial carbon pricing policies. It considers five metrics of stringency, including two new metrics that seek to account for design differences between provincial policies.
The primary objective of carbon pricing is to reduce greenhouse gas emissions. But the price is only half the story. Carbon pricing can generate substantial revenue for provincial governments. How this revenue is recycled back into the economy can affect both economic and environmental objectives. Provinces need to choose wisely their portfolio of revenue recycling options.