Op-Eds
Published in the Globe & Mail on February 4, 2014
By Christopher Ragan
Several recent news stories, including one in the latest Corporate Knights magazine, have reported that large companies including Walt Disney Co., Google Inc., Exxon Mobil Corp. and Suncor Energy Inc. are now using “shadow” carbon prices when analyzing their investment options. Three obvious questions come to mind. What does this actually mean? Why are firms doing this? And what does this practice imply for any future carbon-pricing policy?
Most North American governments don’t require firms to pay for their emissions of greenhouse gases. Some firms are nonetheless analyzing their potential long-term investment projects as…
Published in the Toronto Star on January 15, 2014
By Benjamin Dachis and William B.P. Robson
January is budget season at Toronto city hall. The debate in council is getting louder — but no more enlightening.
As councillors and the mayor trade barbs about whether Toronto taxes and spends too much or too little, it might seem natural to ask how this year’s proposed budget compares to last year’s results. Will we spend more or less? Or to ask how last year’s results compare to the budget council approved a year ago. Did the city hit its targets? Weirdly, however, those are questions almost no one can answer.
Lots of organizations — governments, businesses, not-for-profits — produce budgets at the…
Published in the Globe and Mail on December 10, 2013
By Christopher Ragan
The federal government has a well-deserved reputation for being strong on the economy. In general, it pushes growth-promoting policies while avoiding the opposite.
At the same time, the government frequently repeats its commitment to reducing Canada’s greenhouse-gas (GHG) emissions – by 17 per cent below 2005 levels by 2020. A few weeks ago, the environment minister reaffirmed this specific commitment.
There is a subtle disconnect here. It’s not that a strong economy and reducing greenhouse-gas emissions are mutually exclusive – they aren’t. The evidence is mounting, in Canada and elsewhere, that GHG emissions can be reduced…
Published in the Globe & Mail on November 11, 2013
By Christopher Ragan
As the federal political parties gear up for the 2015 election, platforms are developed that appeal to the political bases and distinguish the parties from each other. The NDP leadership is once again arguing the benefits of raising corporate income tax rates. Based on public comments, the current federal rate of 15 per cent would be raised to something like 20 per cent (or even higher?) if the New Democrats became the next government.
This is a perfect example of a promise that makes for good politics – at least among an NDP audience – but bad economic policy.
The political appeal is simple. As NDP Leader Thomas Mulcair…
Published in the Globe and Mail on October 29, 2013
By Christopher Ragan
The federal government has recently announced its intention to legislate a requirement for balanced budgets. Hard-core fiscal conservatives love this idea because they believe it is desirable to restrict the spending powers, and thus the size, of government. Unfortunately, such legislation is either ineffective or ends up creating bigger problems than it solves. Genuine fiscal responsibility cannot be achieved through simple legislation.
Before proceeding, let me come clean. I share the belief of many fiscal conservatives that large and persistent budget deficits can be a serious problem, and that genuine troubles are created when…
