Was this what the Conservatives were afraid of hearing?
An internal report prepared for the Conservative government reveals a carbon tax as high as $50 per tonne of greenhouse gas emissions would cause little economic damage and would actually provide a small boost down the road…
At $50, a carbon tax would shave about $4.8-billion from Canada’s GDP in 2010, which works out to about 0.09 per cent of GDP. However by 2020, the impact would become slightly positive for the economy, working out to a 0.004 per cent increase to the GDP.
These cost and benefit predictions don’t even include the potentially enormous costs of inaction.
Given the huge estimates of future costs and minimal present costs it shouldn’t be a stretch to expect a $50 per tonne carbon tax. Unfortunately it is:
The Conservative government has promised some form of emission trading system and has indicated the cost of permits will start at $15 per tonne.
The Liberal party has proposed a variation on this called a carbon budget, in which companies that are over a set limit can buy credits starting at $20 per tonne.
Why not $50 per tonne?