| Carbon Tax: 1 Year Anniversary |
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Published: 31-August-2009 By: Tiffany Richmond
As residents of British Columbia weather the first 12 months of carbon tax mania, we can rest assured that the once negative outlook has begun to transform into environmentally friendly behaviour and positive testimonials. When the carbon tax was first implemented last July 1st, controversy took center stage surrounding issues such as price hikes during what were already record high oil prices, and questions such as whether the tax was a government cash grab and if the tax would be an effective way of forestalling climate change. However, a year into the tax, the province is seeing more individuals supporting the initiative and early signs of eco friendly behaviours. A recent public opinion survey completed by the Canadian Environmental Barometer found that close to half of British Columbia residents now say they either strongly or somewhat support the tax on all carbon based fuels. This is an increase from last July, when only 40% of residents expressed support for the tax. Current support for the tax is inching closer to its highest recorded level; in February 2008 (prior to the implementation of the tax) when 55% of those polled backed the carbon tax. Popular support for the tax is significant, given that residents have to pay the price of the carbon tax both daily and annually, as the tax rate will increase every July 1st until 2012. On July 1st of this year the carbon tax rate increased by $5 per tonne, which will translate into an increase of 1.17 cents per litre on gasoline. Although nobody prefers to pay more money for fuel products, higher fuel prices have prompted residents and businesses to be more conservative in their fuel consumption, and to seek alternative ways of reducing their costs. In May 2009 the people of British Columbia re-elected the Liberal government, led by Gordon Campbell, for a third consecutive term, despite a controversial campaign for which the carbon tax proved a hot-button issue. New Democrat Leader Carole James used the rallying cry “Axe the Tax” to garner the support of all those opposed to the Liberal’s carbon tax. James’s efforts cost her the support of major environmental advocates, who called out the NDP for its non eco-friendly position. Some use Campbell’s re-election as evidence that residents are standing behind his carbon tax and are now accepting government policies that help build a sustainable environment. As we mark the successful close of year one, the government of British Columbia has officially documented the revenues gained by the carbon tax. Even though the carbon tax puts a price on each tonne of emitted greenhouse gas, in order to ensure that the tax is revenue neutral, the government is returning a portion of the revenue to taxpayers in the form of tax reductions. British Columbia showed $300 million in revenue from the carbon tax, while the tax reductions totaled $338 million for the fiscal year. Out of the $338 million, approximately 70% of the tax reductions were returned to residents and businesses in British Columbia. In summary, despite having experienced fuel price hikes and provincial election uncertainty, British Columbians are showing increasing support for climate change action. The provincial government’s Live Smart websites state that “it is estimated that the carbon tax will save up to 3 million tonnes of CO2 emissions annually, which is equal to taking almost 800,000 cars off the road each year.” Making it through year one of the carbon tax era shows that there are signs of hope in the near future. With the province of British Columbia’s progressive commitment to reduce greenhouse gas emissions, I’m positive we will see future initiatives that while sparking debate and controversy, will be monumental in climate change history.
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