Canadian Carbon Tax

I believe this carbon tax proposal is a magnificent idea. It is my belief that companies and individuals pollute far too much, and there are no consequences for such actions. In addition, some individuals may not recognize how much they pollute. To be quite honest, I would find it fascinating to see how much I personally pollute compared to others.

According to one website, “compliance-based markets” are often run by a third party, such as the government (http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/cl11179). This is essential, especially in the carbon tax proposal because GHG emissions must be monitored and regulated by an unbiased party. For example, the state of California has passed legislation that required the reduction in GHG emissions by law.

Such a carbon credit system would operate very similar to that of the Kyoto Protocol. It would function as a cap-and-trade system; however, there is one exception (http://en.wikipedia.org/wiki/Kyoto_Protocol). In Canada’s carbon credit system, companies would only be allowed to buy and sale credits with fellow Canadian companies, as to not allow Canadian revenue to go over seas. I believe this system would function very effectively in our country, or in any country for that matter. If a particular company feels the need to excessively pollute, then they must buy credits from other companies; this serves as a great disincentive. On the other side of the spectrum, those companies would pollute less can sell their credits to other companies and make a substantial profit; this serves as a great incentive.

“Under the Kyoto Protocol, the Clean Development Mechanism was created as a way of helping industrialized countries, such as Canada, meet their greenhouse gas emission reduction targets, while helping developing countries at the same time. Forestry projects known as ‘sinks’ absorb greenhouse gas emissions and if properly designed and implemented, could promote sustainable development in developing countries. Those projects will be able to qualify for carbon credits under the Kyoto Protocol, which investors can earn and use towards their Kyoto targets” (http://www.davidsuzuki.org/Campaigns_and_Programs/Climate_Change/News_Releases/newsclimatechange11260302.asp).

Once again, it is my belief that this carbon tax proposal could effectively reduce Canada’s GHG emissions. This would be an excellent idea only if the revenue made from such a system would be redirected to act as an incentive for those who are environmentally friendly; otherwise, it will be yet another tax among many others. This carbon tax system would work very similar to that of North Middlesex’s garbage tag system. For each garbage bag, you must buy a sticker that costs a few dollars; this is a small amount of money, but such a cost is a great disincentive. To meet Canada’s obligation to the Kyoto Protocol, this system would be of great help.