Download This PaperTaxing Emissions, Not Income: How to Moderate the Regional Impact of Federal Environment Policy
24 Pages Posted: 16 Dec 2010
Date Written: November 25, 2010
Abstract
Canadian policymakers have the policy tools needed to ameliorate the regional economic harm that taxing GHG emissions can cause. A price on GHG emissions will affect Canadian provinces differently, possibly undermining support for a policy that incurs regional transfers of income. The authors recommend returning to the provinces the revenues collected through auctioned emissions permits, so that they may offer personal and corporate income tax relief, all to moderate the regional impact of GHG carbon policy. Allowing provinces to retain the revenues collected from auctioned emissions permits would achieve a greater degree of regional equity than the other policy options.
Keywords: Economic Growth and Innovation, GHG emissions, GHG carbon policy. Canadian federal policy, regional impacts of climate policy
JEL Classification: Q58, H23
Suggested Citation: Suggested Citation
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