The recent announcement by Canada’s Minister of the Environment, Catherine McKenna, that there will be a national carbon price by the end of the year, is extremely welcome news. As someone who has spent a great deal of time trying to articulate to the public the basic rationale for carbon pricing (here, here, here and here), this is about as close to a “win” as anyone could reasonably expect. Let’s hope it happens.
Most of the time that I spent writing about it, I was trying to explain very basic features of the policy (what a collective action problem is, how the price system works, why it’s not a “tax on everything,” etc.) This was aimed primarily at a right-wing audience, of people who were inclined to do nothing about climate change. I have spent comparatively less time addressing a left-wing, or environmentalist audience, explaining why pricing is an appropriate policy measure in this case (although there was this and this).… Continue reading