Abstract

Canada's federal carbon-pricing scheme and its subnational counterparts might not be sufficient to meet the target of net zero by 2050. In the meantime, carbon dioxide (CO<e3>2) emitters are allowed to profit by externalizing environmental costs and risks on to present and future taxpayers. When the income tax ignores these externalities, it implicitly subsidizes CO<e3>2-intensive activities relative to less harmful alternatives. In examining our carbon tax policy options, we ought to consider whether the externalization problem could be addressed within the income tax to ensure that the income tax system assists, rather than undermines, the net zero pledge.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.