For the rest, I thought it would be useful to run through a summary of the BC Carbon Tax. I found 2011 BC Emissions data so I’ve updated some of the numbers (BC Gov .xls file from
here).
Correlation: BC has reduced CO2 emissions from sources influenced by the tax by 10% per capita since the carbon tax was enacted
Causation Theory: The carbon tax has altered consumer behavior resulting in reduced CO2 emissions
”Controls” that Support the Theory
(1) Rest of Canada:
BC CO2 emissions/capita by sources affected by taxes (2008-2011)= -10%
Rest of Canada CO2 emissions/capita by sources affected by taxes (2008-2011) = -1.1%
(2) BC Prior to Carbon Tax:
2008 to 2011 (with Tax) Total CO2 Emission Change (in kt CO2e) = -4,618 (-6.9% or -2.3%/year)
2005 to 2008 = -907 (-1.3% or -0.4%/year)
2003-2008 (5 year) = +1,215 (+1.85% or +0.37%/year)
1998-2008 (10 year) = +4,099 (+6.53% or +0.65%/year)
(Also see Figure 1 at the
first source for fuel consumption/capita trends for BC and the Rest of Canada from 2000-2012, which illustrates both controls)
Counter-Theories/Arguments and Statistical Refutations
1) Population growth means the total emissions are actually higher – BC’s population has grown 3.4%, lagging behind CO2 reductions ~3:1 (also total emissions from all sources is down 4,618 kt CO2e)
2) GDP reduction is the cause – BC’s GDP has grown 3.8% since the tax
3) The rest of Canada is reducing emissions as well – the rest of Canada has reduced emissions/capita by only 1.1% (8.9% difference)
4) Any reduction in emissions in BC are offset by increases in Washington – Yes, boarder travel to Washington has increased significantly but Washington’s emissions, both total and from vehicle petro, have decreased by 3.5 and 1.4 Million Metric Tons of CO2, respectively
5) The CO2 reductions are coming from aspects not affected by the Carbon Tax – the 10% reduction is on sources subject to the carbon tax but total CO2 emissions have also been reduced by 6.9%
6) It may be effective at emissions reductions but people hate it – approval of the tax went from 54% (15% strongly, 39% somewhat approve and 28% strongly oppose) in Feb 08 to 64% (25% strongly, 39% somewhat approve and 17% strongly oppose) in Nov 12 (note: the tax increased incremental in that time) (
Source)
7) Climate taxes like this will adversely affect the poor – Part of the revenue from the tax goes to providing $115.50 + $34.50/child to low income families
8) The time span is too short to establish significant conclusions – I understand this point and why people may choose to remain agnostic about the causation but, to me, 4 years of significant reductions that outpace all controls and account for other metrics (population, GDP, off-sets in Washington) gives me confidence in the causation.