This report was produced in partnership with the Clean Economy Alliance (CEA) to model the impact of two potential carbon pricing scenarios in Ontario: a revenue-neutral carbon tax meeting the requirements imposed by the federal government, or Ontario’s current a cap-and-trade system with revenues recycled into climate-related programs.
The report finds that both carbon pricing options reduce carbon emissions with no measurable impact to Ontario’s economy. The cap-and-trade approach leads to greater reductions in greenhouse gas emissions overall, largely because it is accompanied by investments in environmental programs. However, for any form of carbon pricing to work, emissions must be priced high enough to drive systemic changes and the price must be supported by strong complementary climate policies.
The Clean Economy Alliance (CEA) is a group of over 100 organizations representing a broad cross-section of Ontarians that united in 2015 to urge Ontario to show leadership in addressing the crucial issue of climate change. To find out more, please visit www.cleaneconomyalliance.ca.