Alberta’s carbon tax gets a failing grade from the Fraser Institute
Posted February 27, 2019 7:59 am.
Last Updated February 27, 2019 9:06 am.
This article is more than 5 years old.
CALGARY (660 NEWS) – A new study finds Alberta’s carbon tax is missing the mark.
The study comes from the Fraser Institute, which looked at the carbon tax and its proposal to reduce greenhouse gas emissions.
It concludes the Notley government is unlikely to create any meaningful carbon reduction with the levy.
Researcher Robert Murphy said for consumers, it’s a lot of pain for very little gain.
“If people want to embrace a carbon tax because they’re concerned about climate change, I understand that and I’m not saying they’re wrong to do so but they should realize that pain comes along with it, that’s part of the whole rationale of putting a carbon tax in place. Don’t be surprised if energy bills and prices at the pump keep going up because of this.”
Despite the government’s claim, Murphy said the tax is not revenue neutral because money raised is used to subsidize so-called green initiatives, rather than off-setting costs of individuals and businesses.
READ MORE: Carbon tax debates to heat up with two major elections in 2019
He also said that Alberta’s approach to the tax is misguided.
“On its own terms, if you wanted to use a carbon tax to address global climate change, this is very poorly designed from an economics perspective.”
One of the biggest recommendations following the study is that the Alberta government should not exceed targets set by the federal carbon tax.
