Quote:
Originally Posted by 1overcosc
My main complaint with the plan is that we aren't actually using it and we've started rolling out all these mandates and heavy handed regulations anyway, even though the carbon tax means none of that is necessary.
|
This is a good point. I like the carbon tax in theory, and one of the reasons is that it prices in externalities and if set correctly allows people to make socially optimal decisions by looking at dollar value trade-offs. We can debate what the right pricing is.
In practice here in BC it's a blended tax and social transfer scheme that depends on your income (with families who could barely afford to rent an apartment here having money clawed back while the mansion dwelling $0 income homemakers will get a full payout as usual), and it hasn't stopped the feds or other levels of government from implementing other ad hoc climate-related policies. The town councillors and the like want to be seen personally pushing for climate policy.
Another problem which we saw with heating oil in Atlantic Canada is that, yes, while it can encourage better decisions, not all of the purchases are voluntary. You can't pick the energy source of your local electric utility and it's not always easy to switch away from old carbon intensive practices. It's not just a matter of buying a truck vs. electric car the next time you're in the market for a vehicle. If you are in some provinces your electric vehicle will be charged with hydro and in other places it'll be coal. If your house already has an oil furnace and tank, swapping them out is expensive.