06 Jul

Putting a price on carbon does not, actually, bring an economy to a screeching halt

The oft-repeated tenet that a carbon tax will cripple the economy is bullshit:

“The B.C. carbon tax is built on a simple tenet of human behavior: When the price of something goes up, people will consume less of it. It actually applies to not just gasoline, but to all sources of atmospheric carbon, including natural gas and propane, and is based on how much carbon they emit. For example, since natural gas burns cleaner than gasoline, it is taxed at a lower rate. This ensures emissions are priced in proportion to their impact on the climate.

As a result, British Columbia’s per capita greenhouse gas emissions are now nearly 20 percent below the rest of Canada’s. This put the province ‘within spitting distance’ of its goal to reduce emissions 6 percent below 2007 levels by 2012 a year ahead of schedule, says Mary Polak, B.C.’s minister of the environment.”

(Via B.C. put a price on carbon. What happened next will surprise you | Grist.)