Op-Ed: Carbon Pricing on Track in North America

Despite continued dispute over their effectiveness, carbon taxes and cap-and-trade programs in the United States and Canada have raised billions of dollars. And China has now followed suit.

1 minute read

January 21, 2016, 11:00 AM PST

By Philip Rojc @PhilipRojc


Pollution 2

Evanna Chung / Flickr

This editorial from the New York Times advocates for carbon pricing programs, many of which have seen success across North America.

The revenue from carbon pricing schemes, which is considerable, can be funneled to clean energy development. From the article: "Many economists regard carbon taxes as the simpler and more elegant solution, and cap-and-trade systems like the one that failed in the United States Congress as complex and hard to explain. But both systems effectively raise the price of using fossil fuels, which encourages utilities and other producers to generate more energy from low-carbon sources like solar, wind and nuclear power."

Opponents of carbon pricing, especially direct taxes, argue it will have economic repercussions. But Canada may have a way around that. "British Columbia, which is home to 4.7 million people, has placed the highest price on emissions in North America, taxing a ton of carbon emitted at 30 Canadian dollars, or about $21 [...] One big appeal of its system is that it is essentially revenue-neutral. People pay more for energy (the price of gasoline is up by about 17 cents a gallon) but pay less in personal income and corporate taxes."

Tuesday, January 19, 2016 in New York Times

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