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Thursday, September 28, 2006

Green Party of Canada joins Pigou Club

The Green Party of Canada has joined the Pigou Club, according to the Toronto Star:
Canadians should pay a carbon tax on gasoline and other fossil fuels in return for lower income and other personal taxes, the Green party says.

The shift in the tax burden — designed to ensure federal revenues don't increase — would cut consumption of fuels that cause climate change and help Canada to achieve its Kyoto Protocol target, Green Leader Elizabeth May said yesterday.

Even conservative economists have concluded "a carbon tax ... is the single most effective way" to cut greenhouse gas emissions and promote a strong economy, May told reporters.

The heaviest tax would be imposed on fuel with the highest carbon content — coal. The levy would be lower on cleaner fuels, such as natural gas. It wouldn't be punitive: "It's not intended to change driving habits," she said. It might raise the cost of gasoline and heating fuels by cents a litre.
I don't get the not intended to change driving habits part, but good for the Greens.

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