The Carbon Tax Effect on British Columbia Economy and Carbon Emission

Abstract

A carbon tax is the most common carbon emission control policy widely used. British Columbia is the first Canadian province to use a carbon tax and implementing a carbon tax will impact British Columbia's environment and economy. This paper analyzes the scale of the carbon tax, energy consumption, GHG emission, and government revenue in British Columbia to evaluate the effect of the carbon tax. This paper finds that a carbon tax has no impact on dramatically reducing GHG British Columbia emissions, but it can help the government get more revenue. Although the carbon tax has little effect on reducing carbon emissions in British Columbia, the carbon emissions in British Columbia have been significantly reduced compared to other provinces. Therefore, we believe that the British Columbia carbon tax has a significant impact on controlling CO2 emissions, and the value of carbon emissions can be further controlled by increasing the carbon tax.