Rethinking Lifestyle

Ever since the idea of imposing a carbon tax in Canada has surfaced, its critics have repeatedly claimed that the idea is nonsensical and would destroy jobs and growth. Well, the latest numbers from Statistics Canada demonstrate the exact opposite. B.C.’s carbon tax policy, instituted in 2008, has been a success; both environmentally and economically.

The B.C. policy adds additional carbon taxes to fossil fuels used for transportation, home heating, and electricity while at the same time reducing personal income and corporate taxes by at least an equivalent amount.  By 2013 this carbon tax was collecting about $1 billion dollars, which translates into B.C. now having the lowest personal income tax rate in Canada and one of the lowest corporate tax rates in North America. And, furthermore, B.C.’s rate of economic growth has kept pace, and even slightly outperformed, that of the rest of Canada over this time period. According to the minister of the environment of British Columbia, Terry Lake, “It makes sense, it’s simple, and it’s well accepted.”

“At the same time,” notes Ross Beaty, a Globe and Mail columnist, “it’s been extraordinarily effective in tackling the root cause of carbon pollution: the burning of fossil fuels. Since the tax came in, fuel use in B.C. has dropped by 16 per cent; in the rest of Canada it’s risen by 3 per cent. To put that accomplishment into perspective, Canada’s Kyoto target was a 6-per-cent reduction in 20 years.

B.C.’s impressive results have gained global attention and praise. Organizations like the Organization for Economic Cooperation and Development (OECD) and the World Bank are beginning to recommend the B.C. model to the rest of the world. And just a few weeks ago the International Monetary Fund (IMF) also came on board with specific proposals to increase taxes on fossil fuels in 156 countries. It is a shame, and somewhat embarrassing, that most of Canada is rejecting this global trend. The Federal Government is still locked into negative thinking and rhetoric on this subject and unwilling to acknowledge the powerful and positive potentials that can come with taxing carbon.

If we are willing, we can learn from the B.C. experience that it is possible to internalize the real costs of pollution while at the same time developing a competitive, 21st century economy. It is seldom disputed these days that air pollution, caused mostly by burning fossil fuels, negatively affects the health of millions of Canadians and drains billions of dollars from the Canadian economy. It is quite clear that these problems will continue to increase – unless the rest of Canada follows B.C.’s example.

It is time to strengthen the notion in Canada that taxes can be used to influence the behavior of its citizens. We have no problem doing that by raising taxes on tobacco, for example. British Columbia has shown us it is possible to do the same in relation to fossil fuel consumption. So what is stopping us from getting on board?