Moved from the Liberal thread.
https://skyscraperpage.com/forum/sho...6344&page=2147
Quote:
Originally Posted by Truenorth00
You seem to have a poor grasp of basic economics. The entire point of the carbon tax is to shift the equilibrium price of hydrocarbons to compel a reduction in demand. This is basic high school level supply and demand curves.
If you want to cut the carbon tax by 90%, that would reduce it to $5/tonne. That is effectively 0.5¢/L. Aside from the ridiculous idea of expanded government bureaucracy, how do you plan to achieve your stated goals with:
1) Very little revenue from a half cent per litre tax.
2) A price signal that does nothing to encourage any behaviour change.
A rebated program creates the price signals without actually substantially creating an economic impact. No money is actually taken out of the economy.
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I understand perfectly well what they're trying to do, I just think it's going to backfire with unintended consequences - humans suck at predicting how the market will respond to things. This includes politicians and professional investors.
That said your argument above would imply 5¢/L would then be enough to encourage behaviour change. That's an extra $5 or less to fill up for most people. That isn't nearly enough to discourage pickup trucks.
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