For Immediate Release – Clean Prosperity Response to PBO Report on Carbon Taxes: A Higher Carbon Tax Means a Higher Rebate
Today, Canada’s parliamentary budget watchdog said a higher price on carbon will be needed if Canada is to meet its Paris Agreement targets for greenhouse-gas emissions. The report said the price on carbon pollution will need to rise by $6 a tonne starting in 2023, reaching $102 by 2030.
A higher price on carbon would mean families will get even higher carbon rebates, since all the money from a carbon tax goes back to households and businesses. Based on our initial calculations, a $102 carbon price would mean an Ontario family of 4 would receive $1,473 annually.
The PBO has already stated in a previous report that 8 out of 10 families will see carbon rebates that exceed their carbon costs. The same should hold true under a scenario where the carbon price continues to rise gradually each year.
Further, a carbon tax and rebate is widely recognized as the lowest-cost, most pro-growth way to reduce carbon emissions. Any other approach would require significant government intervention and come at a significantly higher cost. For example, the plan proposed by Premier Ford in Ontario would cost twice as much as the federal carbon tax, and would not have rebates.
“A carbon tax and rebate system is the lowest cost and most pro-growth way for us to reduce our carbon emissions and hit the Paris targets,” said Michael Bernstein, Executive Director of Clean Prosperity. “If the federal government were to gradually raise the carbon price, as the PBO suggests, it would leave the vast majority of families better off given the much higher rebates. With almost $1500 per year, families would be able to make investments that would reduce their carbon footprint, saving them even more money in the future.”
Contact: Mollie Anderson