We’ve been through a week of particularly misleading rhetoric about the Parliamentary Budget Officer’s report on the impact of a $50/tonne carbon tax on the Canadian economy, where the figures about the “damage” it would cause to our economy supposes that the money collected would be either lit on fire, or given in lump sums to individual families rather than recycled in provincial tax cuts or other measures. But confident that it reinforces their narrative, the Conservatives have been parading it around as “proof” that they are right to oppose carbon pricing. To that end, while doing the rounds on the Sunday political shows, Andrew Scheer said that his party’s climate plan – yet to be revealed, but he promises that’ll happen before the 2019 election – will both meet Paris Accord targets but won’t impose a carbon tax. That’s…special.
https://twitter.com/InklessPW/status/990706861056839680
Given previous Conservative positions on this, it’s likely that this will involve either magic, or some particularly onerous and costly regulations of industry that will simply internalize the costs (which get passed onto consumers) rather than having that cost be out in the open so that people can see it in front of them and make choices appropriates – you know, a market pricing mechanism that you would think a conservative party would favour over red tape and regulations. (This of course assumes that they are actually a conservative party instead of a right-flavoured populist party, which we know that they’ve become). They will claim that they had a record of carbon reduction while in office, but it had zero to do with their own politics, and everything to do with Ontario shuttering their coal-fired electricity plants and the economic downturn. Remember that their “coal-fired regulations” applied to new plants which hadn’t been built yet, and their sector-by-sector regulations were slow to roll out, and steadfastly strayed away from our biggest-emitting sectors, like the oil sands (which they still haven’t given any indication how they would mitigate their emissions without carbon pricing to drive innovation). I suspect we’re going to be looking at some hand-waving about future technology that will magically remove carbon from the atmosphere, but I leave myself room to be pleasantly surprised.
Meanwhile, on the subject of carbon pricing, here’s Andrew Leach to correct some of the performative outrage and bad economics that have been passed around in the past week.
Yesterday, at the Senate’s Banking Committee, I asked two non-partisan economists about the impact of @JustinTrudeau’s carbon tax is on Canada’s competitiveness with the United States. The answers will alarm anyone who cares about Canada's economy. Part 1 #cdnpoli #cdnsenate pic.twitter.com/x5yldFlc3v
— Linda Frum (@LindaFrum) April 27, 2018
Things Cross gets wrong: 1) plenty of published evidence that BC carbon tax has affected behaviour 2) claim that $50/t translates to 5c/L is wrong 3) confounding impacts of levels vs fluctuations in gas prices on consumption is wrong. All that in 2 minutes. https://t.co/DPvDcpFYi2
— Andrew Leach (@andrew_leach) April 28, 2018
That is theory and I don't disagree with it. But look at emissions in Canada. They have risen overall except for the recession of 2008-9. Ontario and Quebec emissions have actually declined but emissions higher elsewhere. Why did Ontario go down — wasn't carbon pricing. https://t.co/qtKKMLFVo9
— Dr. Jack Mintz (@jackmintz) April 29, 2018
You're forgetting the part of the theory which says that stringency and cost-effectiveness are different things. Nothing in the theory says you can't have effective emissions reductions through policy through regulations. It just says it will be more expensive than via prices. https://t.co/IDDX28zDUK
— Andrew Leach (@andrew_leach) April 29, 2018
Here's a tell: if the same person is both decrying the costs of Ontario-style policy and lauding the effectiveness of Ontario style policy, the Venn diagram showing "policies they would support" becomes a tangent between two circles.
— Andrew Leach (@andrew_leach) April 29, 2018
Here's @jackmintz on carbon pricing vs regulations. Let's be clear about impacts of carbon pricing on prices and growth, but let's also be clear that regulations have costs as well. pic.twitter.com/rzkrmeRflL
— Andrew Leach (@andrew_leach) April 29, 2018
"(not paying for environmental damages is), in effect, a public
subsidy to fuel users—a subsidy that is detrimental to the environment, public health, and economic efficiency." Mintz and Olewiler, 2008 2/2— Andrew Leach (@andrew_leach) April 29, 2018