Although it is too early to call British Columbia's Carbon Tax a success, the early results appear positive.
The tax which levies a fee for carbon emissions produced from burning fuels like coal, oil, and gas has been productive economically and environmentally.
The first tax of its kind in North America, many feared it would hurt the economy and be a burden for low-income families. However, it has put more money back into the B.C. economy than it has taken out.
Since 2008 the Carbon Tax has collected CDN$846 million. The tax, however, is tied to reductions in personal and corporate income taxes, as well as tax credits for low-income individuals; these offsetting incentives have generated CDN$1.1 billion, netting a $230 million tax reduction for B.C. taxpayers.
Models estimate the tax will cut the province's emissions by 5%, but 2009 carbon emissions data has not been released yet; so, these figures have yet to be verified.
These positive results have led to glowing recommendations from economic gurus. Harvard professor Michael Porter, a world-renowned leader in competitiveness, recently said, "The right policy regime is a carbon tax, and the province of British Columbia has pretty much got it right."
This revelation comes on the heels of the U.S. government publicly dismissing an energy bill that includes a cap-and-trade system for carbon emissions.
Read the full story at the Ottawa Citizen: B.C.'s carbon tax is looking like a winner
Nathanael Baker is the Managing Editor of EnergyBoom. He has researched and reported on the issues of renewable energy, sustainability, and climate change for over two years. He has provided research to the New York Times and The Economist, as well as being published on different media outlets including, The Energy Collective.
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