Poll: Is a Carbon Tax a Good Idea?
Tuesday July 1, 2008
B.C. drivers are now officially paying an extra 2.4 cents a litre on gasoline as the provincial government's new carbon tax kicks in.
The purpose of the carbon tax, which applies to virtually all fossil fuels, not just gasoline, is to "persuade" energy users to make more environmentally friendly choices and cut down on their fuel consumption.
The carbon tax starts at a rate based on $10 per tonne of associated carbon, or carbon-equivalent, emissions and will rise by $5 a year for the next four years — reaching $30 per tonne by 2012. This works out to 2.41 cents per litre for gasoline, rising gradually to 7.24 cents a litre by 2012. For diesel and home heating oil, it works out to 2.76 cents per litre, rising to 8.27 cents over the same five-year period.
Supposedly, as the carbon tax is revenue neutral, all revenue generated by the carbon tax will be returned to individuals and businesses through reductions to other taxes.
Businesses, of course, stand to be hard hit by this latest fuel cost increase. The B.C. government's answer to this is basically a shrug. "Business and individuals can choose to avoid it (the carbon tax) by reducing usage, increasing efficiency, changing fuels, adopting new technology or any combination of these approaches", they say (Balanced Budget 2008 Backgrounder).
At a glance, none of these look like easy or cheap things for businesses to do.
B.C. is the first province to put a carbon tax into effect, but it probably won't be the last. Carbon taxes seem to have captured government's imagination at all levels and has even become a "live or die" issue for the federal Liberal party. (See A Green Shift for Canada.)
But what do you think of this carbon tax approach? Is a carbon tax a good or bad idea? Vote in the poll. You can also comment below if you like.
Related: 10 Ways to Cut Fuel Costs
The purpose of the carbon tax, which applies to virtually all fossil fuels, not just gasoline, is to "persuade" energy users to make more environmentally friendly choices and cut down on their fuel consumption.
The carbon tax starts at a rate based on $10 per tonne of associated carbon, or carbon-equivalent, emissions and will rise by $5 a year for the next four years — reaching $30 per tonne by 2012. This works out to 2.41 cents per litre for gasoline, rising gradually to 7.24 cents a litre by 2012. For diesel and home heating oil, it works out to 2.76 cents per litre, rising to 8.27 cents over the same five-year period.
Businesses, of course, stand to be hard hit by this latest fuel cost increase. The B.C. government's answer to this is basically a shrug. "Business and individuals can choose to avoid it (the carbon tax) by reducing usage, increasing efficiency, changing fuels, adopting new technology or any combination of these approaches", they say (Balanced Budget 2008 Backgrounder).
At a glance, none of these look like easy or cheap things for businesses to do.
B.C. is the first province to put a carbon tax into effect, but it probably won't be the last. Carbon taxes seem to have captured government's imagination at all levels and has even become a "live or die" issue for the federal Liberal party. (See A Green Shift for Canada.)
But what do you think of this carbon tax approach? Is a carbon tax a good or bad idea? Vote in the poll. You can also comment below if you like.
Related: 10 Ways to Cut Fuel Costs
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