OECD Environment Working Papers

ISSN: 
1997-0900 (online)
DOI: 
10.1787/19970900
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This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.
 

The Political Economy of British Columbia's Carbon Tax You or your institution have access to this content

English
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Author(s):
Kathryn Harrison1
Author Affiliations
  • 1: University of British Columbia, Canada

08 Oct 2013
Bibliographic information
No.:
63
Pages:
22
DOI: 
10.1787/5k3z04gkkhkg-en

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In July 2008, the Canadian province of British Columbia (BC) launched North America’s first revenue-neutral carbon tax reform. The tax, which applied to all combustion sources of all fossil fuels, was introduced at a rate of CAD 10 per tonne of CO2, with a schedule for annual increases of CAD 5 per tonne of CO2 until the tax reached CAD 30 per tonne of CO2 in 2012. Tax revenues were fully recycled via a combination of corporate and income tax cuts, phased in over time. This paper reviews the political economy of the BC tax in three distinct periods – its origins, its survival in the face of political backlash, and its longer-term prospects...
Keywords:
carbon tax, political economy, policy lessons
JEL Classification:
  • F18: International Economics / Trade / Trade and Environment
  • H23: Public Economics / Taxation, Subsidies, and Revenue / Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies
  • P48: Economic Systems / Other Economic Systems / Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies
  • Q38: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Government Policy
  • Q48: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Energy / Government Policy
  • Q5: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Environmental Economics
  • Q58: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Environmental Economics / Government Policy
 
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