Tuesday, February 26, 2008

Gas Tax not big enough

Here's the trend in oil prices:

And here is U.S. the carbon emissions trend:

What's my point? If you want real reductions in carbon emissions you're going to have to create a carbon tax much greater than what B.C. has planned. People just don't respond to price changes enough for a 11 cent raise in gas prices in the next decade to make any difference. The day after the government came out with this plan gas prices shot up 6 cents, all on their own. The plan may be a step in the right direction, but it's a pretty small step.

1 comment:

Scruffy Dan said...

I think the flaw in the carbon tax is that the increases to the tax end on 2012. If they continue increasing the carbon tax well beyond 2012 I think the tax will make a significant contribution reductions in GHG emissions. Otherwise you are right, the tax isn't large enough to make much of a difference.