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Eight years and counting
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British Columbias Carbon Tax A brief history Matt Horne Pembina - - PowerPoint PPT Presentation
British Columbias Carbon Tax A brief history Matt Horne Pembina - - PowerPoint PPT Presentation
British Columbias Carbon Tax A brief history Matt Horne Pembina Institute April 26, 2016 Eight years and counting 2 Tax rate and coverage Implemented in 2008 at $10 per tonne of CO 2 e with a schedule to reach $30 per tonne in 2012
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Tax rate and coverage
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Implemented in 2008 at $10 per tonne of CO2e with a schedule to reach $30 per tonne in 2012 (equivalent to ~7 cents per litre of gasoline).
Frozen at $30 per tonne from 2013 until 2018.
Applies to almost all fossil fuel combustion in B.C. (~70%
- f B.C.’s carbon pollution).
$0 $5 $10 $15 $20 $25 $30 $35 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
B.C. Carbon tax rate schedule
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Revenue recycling
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Environmental results
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Economic results
6 (Source: Statistics Canada, 2000-2014)
0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2000 2002 2004 2006 2008 2010 2012 2014
Change in GDP
BC Rest of Canada
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Political perspectives
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20 40 60 80 2009 election 2013 election MLAs supporting the carbon tax MLAs opposed to the carbon tax
(MLA – Member of the Legislative Assembly)
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Public perspectives
8 (Source: Environics Institute, 2008-2015)
0% 10% 20% 30% 40% 50% 60% 70% Feb 2008 July 2008 May 2009 June 2010 Nov 2011 Nov 2012 Oct 2013 Oct 2014 Oct 2015
Support for B.C.'s carbon tax
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Next steps?
In 2015, B.C. started a process to determine the next steps in its climate plan.
A multi-sector advisory panel recommended increasing and expanding the carbon tax.
B.C. is planning to release its new climate plan this spring.
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Affordability
- Reduce sales tax,
increase low-income tax credit, and increase northern/rural tax credit
Competitiveness
- Implement measures to
protect competitiveness of emissions-intensive, trade- exposed sectors
Affordability and competitiveness
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Support for next steps
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Lessons learned
The carbon tax has been an economic and environmental success.
That success also depends on the other policies in B.C.’s climate plan.
The success has led to broad support for carbon tax’s first phase.
Everyone has an opinion on how to best use carbon tax revenue.
Next steps are still uncertain.
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Thank you
Matt Horne
phone: 778.235.1476 email: matth@pembina.org twitter: @HorneMatt