Sunday, June 10, 2007

A Carbon Tax North of the Border

This is good news for the Pigou Club, even if the analysis of tax incidence does not make much sense:

Quebec Approves Carbon Tax to Cut Greenhouse Gases
Quebec will become the first Canadian province to impose a carbon tax on energy producers, raising C$200 million ($189 million) a year for measures that will reduce greenhouse gas emissions....

[Natural Resources Minister Claude] Bechard said he expects that the companies will absorb the higher costs, though he "can't guarantee'' that producers and refiners won't pass them on to consumers. "I don't think that we will put any pressure on the gas price,'' he said.