The president of an economic think tank says provinces without large hydroelectricity resources are raising fair objections to Ottawa’s proposed carbon pricing.
Finn Poschmann of the Atlantic Provinces Economic Council says Ottawa’s insistence that provinces must either adopt a carbon tax or a cap and trade system is ignoring the importance of regulated emission reductions that some provinces have already put in place.
READ MORE: Nova Scotia ‘will not be implementing a carbon tax,’ McNeil says
He says emissions standards imposed on industry by regulation are very effective, and layering on additional taxes or imposing cap and trade may do serious economic harm without a matching environmental benefit.
He says the transition away from coal by Nova Scotia and other provinces has already cost billions, and electricity ratepayers in Nova Scotia and Ontario will be paying for it for decades to come.
He says Newfoundland and Labrador recently imposed a fuels tax increase which, if it were called a carbon tax, would be the stiffest carbon emissions tax in the country.
READ MORE: Carbon price hit on Nova Scotia power rates unclear, Emera CEO says
Poschmann notes the federal plan says Ottawa should be “flexible and recognize carbon pricing policies already implemented or in development,” but then only offers a menu that includes carbon emissions taxes and cap and trade.
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