You have to think of this as the first step in a process. Carbon is priced in Phase 1, and then in phases 2, 3, 4, and so on, that price is gradually ratcheted up. Alberta has been told that, if it cleans up its act and gets with Phase 1, it will be given a chance to send its oil to the larger world market, where it might fetch a better price. And so, at some political cost to the ruling government and economic cost to the province itself, it has attempted to do right.
So how do you then get a buy-in on phase 2, 3 and etc. if this good behaviour is not rewarded somehow? If no action the province takes will be rewarded why bother doing anything in future? So do we achieve our ultimate goal (hitting our announced carbon reduction targets) more quickly through cooperating or trying to steam-roll a whole industry out of business?
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