Carbon Tax vs. Environmental Regulations

The Conservative government has rejected the proposal for a carbon tax in favour of the United States' model of regulating emissions through environmental regulations.

Energy industry critics and environmental groups have endorsed the carbon tax model citing the high bureaucratic involvement and low flexibility of regulations, and arguing that a market-based approach minimizes administrative costs and maximizes mechanisms to price the cost of greenhouse gases. Supporting these arguments, a paper prepared by Nancy Olewiler, released by the University of Calgary, recommends the federal government institute a carbon tax as part of a full-cost pricing system.

The author will be presenting her views to the Natural Resources Minister on March 9, 2012, suggesting further pressure on Ottawa to choose taxation over regulation.