Re: Ontario’s cap and trade system needs a closer look [In My Opinion, April 5, 2016]:
A carbon tax is a far better system than cap and trade, which worked for CFCs but is not appropriate for this harder challenge.
What we really need is a national program under which every province uses the same approach, one which prevents overlaps, reduces confusion and bureaucracy and double taxation, and is far more effective and fair in the long run.
What I do not understand is why at the same time the Wynne government is imposing this tax it is selling most of Hydro One. The best approach would be to buy hydro from Quebec or Labrador that would otherwise be exported to the US. That requires transmission corridors, which should be under full government control.
The $1.9 billion from cap and trade has to be paid by everyone. We will pay more for gasoline, home heating and nearly everything else. Ideally most revenue from carbon permits or taxes should be rebated back to citizens. Instead, this looks like a tax grab.
Justin Trudeau refused to fight Saskatchewan Premier Brad Wall, so we have a very weak patchwork national policy. Stephane Dion’s Green Shift was a far better approach, but sadly he lacked the ability to get Canadians to buy into it.