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British Columbians Attacked By Carbon Taxes

Posted July 29th, 2010 in British Columbia and tagged , , , , by Adrian MacNair

According to the Globe and Mail, three provinces are working independently to introduce a greenhouse gas cap-and-trade system that would price carbon. Along with Ontario and Quebec, the province of British Columbia will join California and New Mexico as part of the “Western Climate Initiative”.

The most frustrating part of learning about this is that British Columbia already has a carbon tax, which currently sets a price on carbon at around $20 per tonne of CO2 emissions. That price is set to rise to $25 per tonne in 2011, and $30 per tonne by 2012.

According to the BC government website, the carbon tax will top out at 7.24 cents a litre for gasoline at the pump by 2012. But although some people living outside of the province might think the tax only applies to gasoline, the list is much larger and more comprehensive than that.

Diesel will be 8.27 cents per litre, along with light fuel oil. Heavy fuel oil will rise to 9.33 cents per litre; aviation gasoline to 7.34 cents; jet fuel to 7.87 cents; kerosene to 7.68 cents. But it doesn’t stop there.

Home owners pay $1.49.64 per Gigajoule on natural gas heating, widely touted as a “clean energy”. We also pay taxes if we buy propane for our barbecues, butane, ethane, pentane, and oven gas. Hell, the province will charge $62.40 in taxes for each tonne of whole rubber tires.

The carbon tax has already pushed Vancouver to the distinction of having the highest gasoline prices in the country. Not that it’s managed to magically remove cars from the road, as the B.C. government had predicted. If anything, the roads have never been more congested.

The problem with energy consumption taxes is that Canada is heavily dependent on non-renewable energies, and the government isn’t really offering us any alternatives. So the carbon tax has the effect of increasing our overall tax burden, without having any positive environmental effects whatsoever. In fact, in 2008, B.C. was the only province to increase emissions in Canada.

Energy taxes are responsible for inflation in the province, as the costs to business are passed on to consumers. The transportation costs of delivering food aren’t swallowed by the food industry. They distribute that increased cost in each item that arrives in the supermarket. So when you wonder why your B.C. grocery bill is $250 a week, a part of that cost must be factored into the carbon equation.

A carbon market would likely act in very much the same way, but with much worse potential pitfalls. Carbon trading manipulation can lead to people “playing the market” in order to earn millions of dollars, and would pave the way for “green lobbyists” trying to get the government to subsidize their industries. None of that will do anything toward reducing greenhouse gas emissions. It’s just moving a fictitious commodity price around.

It’s particularly disturbing that the federal Conservatives are entirely on board with this scheme. They must realize how poorly the European carbon market has fared, and how much it will affect the common taxpaying mule. Yet we still have Jim Prentice representing the Conservative Party’s continued policy of pandering to pie-in-the-sky ideas that have absolutely nothing to do with stopping global warming, whether that be real or fictitious.

4 Responses so far.

  1. HoarfrostNo Gravatar says:

    The next Ontario election will almost certainly bring in a Conservative government in Ontario. Why anyone would establish a bonafide business in B.C. is beyond me unless it is only a unique B.C. resource or internal B.C. market. Same goes for Quebec except they have a language issue that keeps them insular. I have a feeling that we could have a further exodus out of Quebec into Ontario and a further exodus out of B.C. into Alberta.

    I cannot fathom how money trading will reduce pollution let alone CO2 gas. It will just make the financiers and bankers richer and in control. Talk about conspiracies..

  2. Where are the NDP on the fake green energy and subsidies?

    In rural Ontario we are getting Giant Fans for seven billion.

    We are getting hit with double digit increases and many large companies are getting sweet heart deals for at double the existing rates.

    Wind power is not reliable and, therefore must have a constant back-up source of power (most often fossil-fuels) which duplicates rather than replaces our energy consumption. Pollution and CO2 levels are going up, not down.
    http://windconcernsontario.wordpress.com/2010/07/29/algoma-region-joins-the-fight/#more-14098

    It seems politicians don’t have a problem with making sure the taxpayers never wins.

    Energy companies are now going to recover the class action losses by raising rates.
    http://www.nationalpost.com/Customers+hook+Hydro+suit/3330096/story.html

  3. Powell LucasNo Gravatar says:

    These taxes were never about getting cars off the road or reducing the use of carbon based fuels in general. It is just a convenient way to increase taxes while proclaiming it is done in the name of the environment.

  4. LukeNo Gravatar says:

    I don’t think the federal government is on board with this. I think they’re just stringing things along until the whole house of cards collapses. Of all the provinces to join this sort of economic lunacy, BC, Ontario, and Quebec would be the three I’d most expect to sign up.

    There won’t be a cap and trade bill before the midterms in the US, which means no cap and trade in Canada either. There definitely won’t be cap and trade if Republicans take back the House and/or Senate.

    The Copenhagen Accord is a meaningless piece of paper, which should give folks some clue as to why our government endorsed it so enthusiastically after it was signed. It committed us to do absolutely nothing.