Friday, October 24, 2008

The post-election hilarity continues...

"Carbon taxes and cap-and-trade not that different: report."
Canadian politicians overstate the differences between carbon taxes and cap-and-trade programs as tools to reduce greenhouse gases, a new report suggests.

A study prepared by the Pembina Institute, an energy think-thank, on behalf of the TD Financial Group suggests neither approach will effectively cut emissions on its own. Furthermore, the two systems have more in common than politicians in the recent election campaign would admit.

Both the Conservatives and the NDP advocated variations of the cap-and-trade model, which imposes a limit on the emissions that a company can produce and then allows corporation who do not meet the targets to buy further credits.

The Liberals' much-maligned Green Shift proposed a new tax on fossil fuels that would fund cuts to income and corporate taxes. Conservatives quickly branded the Green Shift as a "new tax on everything."

But either method would result in price hikes for consumers, according to Don Drummond, TD's chief economist.

"It was not a balanced debate from anybody's perspective," Mr. Drummond said. "The ones supporting a cap-and-trade never mentioned the impact on households, pretending I guess that there wasn't going to be any impact, which of course is not true."

When they unveiled their climate change strategy, the Conservatives estimated it would hike electricity costs by 4% and natural gas prices by 2%. (emphasis added)
Oh well...