tag:blogger.com,1999:blog-1663040415968229777.post1420245435055210061..comments2023-05-15T05:38:49.904-05:00Comments on Prairie Topiary: The odds on carbon taxes...Prairie Topiaryhttp://www.blogger.com/profile/16232297726814938610noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1663040415968229777.post-49010070272774367052008-07-21T00:21:00.000-05:002008-07-21T00:21:00.000-05:00Thanks for the comment. You make a good point abou...Thanks for the comment. <BR/><BR/>You make a good point about the carbon tax being ineffective if it's made up for with subsidies to the poor. <BR/><BR/>I think that would depend on how that subsidy is paid out -- if it's a sum that given to all those earning below a certain point regardless of consumption (i.e., something like the GST credit), then the incentivce to reduce carbon emissions would still be there, as they could then get the subsidy AND avoid the tax by reduing their carbon footprint.<BR/><BR/>I do think the subsidy is necessary, as I think it's wrong to hit poor folks with a carbon tax at the same time as fuel, food and housing costs are all rising quickly. In northern regins of the country, there is often little or no alternative to carbon-heavy lifestyles (e.g., diesel-run furnaces in Yellowknife). However, I wouldn't outrightly be opposed to phasing out such a subsidy over a long period of time to allow alternatives to be pursued.<BR/><BR/>Finally, even if the subsidy eases the tax's impact, we should consider that the poor represent a miniscule proortion of the carbon "footprint." Businesses produce the most emissions and, of those emissions being produced by individuals, the vast majority are generated by the wealthy, with the top decile producing the most (at least if we assume that one's carbon footprint is correlated with their overall ecological footprint).<BR/><BR/>That's not to say that behaviour in all income groups shouldn't change. Rather, if we do have a tax (and I'm personally skeptical that the Liberals' version of the tax is the right idea), we should focus on taxing those who are most responsible, while softening the clubbing of those who can least afford the tax (and who probably can least afford to avoid the tax by paying for green alternatives).Prairie Topiaryhttps://www.blogger.com/profile/16232297726814938610noreply@blogger.comtag:blogger.com,1999:blog-1663040415968229777.post-51230603536510459572008-07-18T22:34:00.000-05:002008-07-18T22:34:00.000-05:00Very good post, PT.I have to say that I disagree w...Very good post, PT.<BR/><BR/>I have to say that I disagree with you on the subsidies for the poor. <BR/><BR/>I am very much a left-leaning type, but the foundations of all economic systems, including socialism, are unfortunately economic. When recognizing that the economy is a mere sub-system of the ecology, we can see that both capitalism and Marxism fail miserably.<BR/><BR/>The carbon tax will only be effective if there is incentive to reduce emissions. Taxing with one hand and subsidising with the other only lessens the value of the incentive. If a carbon tax is the policy - and I don't think it should be - then it should hurt to produce carbon.<BR/><BR/>My preference is cap and trade, btw.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1663040415968229777.post-90766038935915752802008-07-17T09:11:00.000-05:002008-07-17T09:11:00.000-05:00Great Post!Great Post!Anonymousnoreply@blogger.com