Quebec's 0.8 cent per litre carbon tax will be going into effect within hours. It is the first of its kind in Canada, and here's hoping it goes off smoothly. One thing. The article suggests that:
It's also not clear if the carbon tax will be passed to consumers.
"It's a $150 million question," said Montreuil of the Canadian Petroleum Products Institute, vice-president of the organization in Eastern Canada.
"And the honest answer is no one knows," he said.
I think that, frankly, everyone knows. Of course it will be passed on. That doesn't mean the tax is not a good thing. It just means that, when trying to change human behavior, the tax code can be a bit of a blunt instrument.
Of course the tax will be passed onto consumers; as it should be. Consumer behaviour can not be changed unless consumers are made to pay more for driving.
ReplyDeletePaul S