XPost: can.politics, bc.politics   
      
   Carbon taxes in action   
      
   Many industrialized countries have used carbon taxes to discourage fossil fuel   
   emissions and promote clean energy.  For example, Sweden has used a carbon tax   
   to reduce greenhouse gas emissions since 1991.  Although a suite of other   
   policies has also been used, the Swedish Ministry of Environment estimated the   
   carbon tax has cut emissions by an additional 20 per cent (as opposed to solely   
   relying on regulations), enabling the country to achieve its 2012 target under   
   the Kyoto Protocol. Sweden's carbon tax has been credited with spurring the   
   innovation and use of green heating technologies that have significantly phased   
   out burning oil for heating.   
      
   Although some critics claim a carbon tax would damage the economy, Sweden's   
   carbon tax is a hefty $140 per tonne of carbon pollution.  Since the carbon tax   
   was introduced, Sweden's economy has grown by more than 100 per cent, and the   
   country recently ranked fourth in the world on economic competitiveness.   
      
      
   In Canada, B.C. and Quebec use carbon taxes as part of their strategies to   
   reduce emissions and encourage investments in energy-efficiency and renewable   
   energy.   
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   What is a cap-and-trade system?   
      
   In a cap-and-trade system, government puts a firm limit, or cap, on the overall   
   level of carbon pollution from industry and reduces that cap year after year to   
   reach a set pollution target.   As the cap decreases each year, it cuts   
   industry's total greenhouse gas emissions to the limit set by regulation, and   
   then forces polluters that exceed their emissions quota to buy unused quota   
   from other companies   
      
   The government creates and distributes pollution quotas, most fairly through an   
   auction.  This creates an incentive for firms to reduce their emissions and be   
   able to sell rather than purchase pollution quotas. Under this system the   
   market determines the price of quotas.   
      
   In this way, the emission cap ensures that total pollution goes down and   
   companies are given an economic incentive to find better ways to reduce harmful   
   greenhouse gas emissions and support clean energy.   
      
      
   Cap-and-trade in action   
      
   Cap-and-trade has been used successfully in the U.S. to reduce emissions of   
   sulphur dioxide and nitrous oxide, two key ingredients responsible for acid   
   rain.  Since the early 1980s, this cap-and-trade system has reduced acid   
   rain-forming emissions by nearly half, which has led to a healthier   
   environment.   
      
   The European Union has had a cap-and-trade system in place since 2005 to reduce   
   greenhouse gas emissions from about 10,000 large industrial emitters.   
      
   Tokyo, a city with a carbon footprint larger than many industrialized nations,   
   launched its own cap-and-trade system in 2010.  The initiative applies to its   
   most energy and carbon intensive organizations and aims to reduce emissions to   
   25 per cent below 2000 levels by 2020.   
      
      
   Carbon tax or cap-and-trade?   
      
   There is much discussion about whether a carbon tax or a cap-and-trade system   
   is the best way to put a price on greenhouse gas pollution.   
      
   The simple answer is that it depends on how each system is designed.  The   
   design will determine the environmental and economic effectiveness. For   
   example, how strong is the economic incentive (i.e., the carbon price) to   
   reduce emissions and switch to cleaner energy?  To which emission sectors does   
   the system apply?   And how are the revenues used?   Are they invested in green   
   infrastructure or corresponding tax breaks?   
      
   Pros and cons   
      
   Both cap-and-trade programs and carbon taxes can work well as long as they are   
   designed to provide a strong economic signal to switch to cleaner energy.   
   However, some differences exist.   
      
   Cap-and-trade has one key environmental advantage over a carbon tax: It   
   provides more certainty about the amount of emissions reductions that will   
   result and little certainty about the price of emissions (which is set by the   
   emissions trading market).   A carbon tax provides certainty about the price   
   but little certainty about the amount of emissions reductions.   
      
   A carbon tax also has one key advantage: It is easier and quicker for   
   governments to implement.   A carbon tax can be very simple. It can rely on   
   existing administrative structures for taxing fuels and can therefore be   
   implemented in just a few months.   In theory, the same applies to   
   cap-and-trade systems, but in practice they tend to be much more complex. More   
   time is required to develop the necessary regulations, and they are more   
   susceptible to lobbying and loopholes.   Cap-and-trade also requires the   
   establishment of an emissions trading market.   
      
      
   A Carbon pricing solution for Canada   
      
   A groundbreaking study shows that Canada's economy can still grow by almost 20   
   per cent over the next decade while the country dramatically reduces its   
   greenhouse gas pollution by about half.   The study shows that Canada could   
   take decisive action and still continue to enjoy strong net job growth and   
   other economic benefits.   By 2020 Canadians would save more than $5.5 billion   
   each year at the gas pump because of more efficient vehicles, more public   
   transit and shorter commutes.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)