“Beyond Kyoto” or just greenwash?

The Doer government released a new climate change action plan today which didn’t include a carbon tax. No surprise really, considering that the Finance Minister bragged just two weeks ago about how Manitoba still has the second-lowest gas taxes in the country.

I’m no Al Gore, but even I realize that a revenue-neutral increase to fuel taxes makes sense as both an environmental and economic policy. But hey, don’t just take my word for it. Check out what 70 economists said to the BC Liberal government to help convince it to introduce a carbon tax:

A carbon tax is superior to regulatory mandates because it allows both ordinary citizens and firms to adjust in the way that is best for them. It will also provide incentives for people to innovate, finding more environmentally friendly ways to produce and to live. In contrast, regulatory mandates force a “one size fits all” approach, are likely more costly to administer, and will always be one step behind in terms of the environmental technologies being applied.

And as for concerns that a carbon tax would increase the cost of living:

The carbon tax could be made revenue neutral by offsetting increased carbon taxes with cuts in other taxes (e.g., the income tax). As a result, the average British Columbian family would see no change in its after-tax income. Families would still, however, have incentives to change their consumption patterns to make them more environmentally friendly.

I love this idea, in much the same way that I love market pricing for hydro-electricity. In both cases, it’s a household expense that I can actually control by choosing how much I consume. On the other hand, income tax is largely unavoidable except for the odd credit for RRSP contributions or charitable donations.

So why doesn’t the Doer government introduce a carbon tax here? Because it’s scared of annoying drivers, and unwilling to put in the effort to educate the public about what “revenue-neutral” means. And because the Premier doesn’t really care about the environment, he cares about looking like he cares about the environment.

It’s the same reason why he’s extending a rebate program for hybrid vehicles, while offering no similar incentive for normally-aspirated vehicles that actually get better mileage. It’s the same reason why he continues to tout the benefits of cheap hydro while ignoring the fact that Manitobans are energy pigs. And it’s the same reason why he’s willing to waste money, time, natural resources and energy building a hydro line in the wrong place.

I can hardly wait to find out how many trees were killed in preparing press hand-outs for this announcement. Mary Agnes?

Related:

• Endless Spin Cycle – Cranky About Carbon Taxes