It’s been on the right track so far with a price on emissions, but needs to make sure that most of its support for technology is for research and development and not wasted on subsidies to businesses and consumers for green tech they would have bought anyway.
Over the next five years, the Alberta government plans to collect nearly $10 billion in revenue from its price on greenhouse gas emissions.
More than one-third of the revenue from the carbon levy is going back to taxpayers and small businesses through tax cuts. But the majority of the money that the government is collecting — more than $6 billion over five years — is going back into the energy sector through government spending.
How should the province…
Governments across Canada are making support for green energy technology a top priority. But they should remember that simply providing subsidies to increase the supply of such tech is not enough. The optimal policy mix includes carbon pricing, to create demand for new tech, combined with government funding focused on developing distant techs not economical for private companies. Subsidizing consumers who adopt new tech is not the solution.
Ontario’s Climate Change Action Plan includes up to $375-million of research and development support for low-carbon tech, and billions more for subsidies to encourage use of low-emission tech. Alberta’s government is proposing a carbon tax, with some revenue devoted to supporting low-emission…
Bank of Canada Governor Stephen Poloz announced Wednesday that the central bank was leaving its overnight interest rate at 0.5 per cent with inflation remaining in the lower end of their 1-to-3-per-cent range. Many had been expecting this announcement and, as such, market reaction has been muted. However, two things stand out.
First, the interest rate decision came with an accompanying cut to the bank’s forecast for Canadian economic growth due to underwhelming exports, a slowdown in business investment and the uncertainty arising from Britain’s decision to leave the European Union.
Second, of late we have seen sterner warnings from the bank reiterating the dangers of the overheated Toronto and Vancouver housing…
