Saturday, March 1, 2008

BC is leading the Pigou way

The British Columbia Provincial Budget was the most "green" in Canadian history. It did not go unnoticed by this economist nor Greg Mankiw .

There has been a lot of news about the BC budget but the aspect I like the best is the revenue neutral nature of the structures: The money raised through carbon taxes are going to be redistributed to individuals and companies by tax reductions. Great! Exactly what I (and many others) have been suggesting.

My Favorite Details
1.) As of July 1st, gasoline will go up 2.4 cents and raise to 7.2 cents by 2012; 2.) Low-income West coasters will receive an annual "climate-action credit" worth $100 per adult and $30 per child; 3.) They have added a new transit plan; 4.) They plan to renovate public buildings and pay home owners to make energy saving changes.

I am not endorsing everything in this budget - for example, the increase in gasoline tax is less than what I was hoping (more like a $1.00 would of made a much bigger statement). However, it is start! Congratulations to the Province of British Columbia!

1 comment:

Matthew said...

This would be great but the BC government has failed to collect taxes in the past in an attempt to subsidize local business and industry.

I am of course referring to the 120 million in stumpage fees that were uncollected which in part lead to the soft wood lumber issues with the USA.

CBC News 21/03/2001