Carbon Tax canada



Live Tax Free in Canada


Live Tax Free in Canada


$36.87


Canada is generally thought of as a high-tax country, and for Canadians the taxes are high. But tax haven expert Adam Starchild walks the reader through a step-by-step program under which a foreign immigrant can live in Canada tax-free while becoming a Canadian citizen -- then use that citizenship to live tax-free in any of dozens of other countries. As these incentives were deliberately legislated to encourage wealthy immigrants to move to Canada, they are unlikely to be removed in the near future.

Tax Tips and Tax Shelters for Canadians


Tax Tips and Tax Shelters for Canadians


$17.87


Tax Tips and Tax Shelters for Canadians provides individuals and business owners with effective tax-planning strategies designed to reduce taxable income, generate tax deductions, increase tax refunds, increase potential investment returns, defer tax, increase wealth, and minimize probate and estate taxes. When implemented properly the strategies discussed in this book are legitimate tax-planning strategies recognized by many financial planners, financial experts, chartered accountants, actuaries, financial commentators, tax lawyers, and the Canada Revenue Agency

The American in Canada: Real-Life Tax and Financial Insights Into Moving to and Living in Canada


The American in Canada: Real-Life Tax and Financial Insights Into Moving to and Living in Canada


$8.39


For Americans either contemplating a move or already living in Canada, this reference answers all the questions necessary to successfully plan the transition, including immigration planning, customs planning, cash management, income tax planning, retirement, wills and estates, risk management, and investments. According to the Association for Canadian Studies, more than 10,000 Americans moved to Canada in 2006, a new 30-year record. The similarity in language, currency, culture, services, and products of these two countries can lead Americans in Canada to mistakenly think its laws and customs are also the same. With proper planning before moving, it is possible to get a five-year tax holiday from Canadian taxes

Large Tax MiniMiser by Daily Plan It


Large Tax MiniMiser by Daily Plan It


$40


Your tax pro, or tax software, is only as good as the records you keep. Tax MiniMiser lets you easily track all your business income, expenses, and profitability with audit-proof records. Thousands of people in the US and Canada use it and love it.

Small Tax MiniMiser by Daily Plan It


Small Tax MiniMiser by Daily Plan It


$33.5


Your tax pro, or tax software, is only as good as the records you keep. Tax MiniMiser lets you easily track all your business income, expenses, and profitability with audit-proof records. Thousands of people in the US and Canada use it and love it.

Permanent Establishment in the United States: A View Through Article V of the U.S.-Canada Tax Treaty


Permanent Establishment in the United States: A View Through Article V of the U.S.-Canada Tax Treaty


$79.67


The last time someone wrote comprehensively about permanent establishment in the United States, the catchwords of the day were Mayaguez, Watergate, and Squeaky Fromme. At that time, there were only nine U.S. cases and thirteen revenue rulings addressing permanent establishment. Perhaps not surprisingly, over a third of those authorities addressed the U.S.-Canada tax treaty. This book provides a fresh look at "PE in the U.S." using the U.S.-Canada treaty as a case study. It also illustrates a methodology that can be applied to the study of other treaty concepts. Until September 2007, the treaty with Canada was fairly representative of late-twentieth-century U.S. tax treaties. The protocol signed on September 21 made it cutting-edge in many respects, and the creation of a new "services PE" was one of the innovative changes that Tittle explores in this book. About the author: Martin B. Tittle is an international tax attorney who practices in Washington, D.C. and Ann Arbor, Michigan. He graduated magna cum laude from the University of Michigan Law School and has written extensively on international topics for Tax Analysts, BNA, Inter-American Development Bank, Practicing Law Institute, International Bureau of Fiscal Documentation, and the U.S. Congress. His weekly newsletter "U.S. International Tax Outlook" is widely circulated.

Carbon


Carbon


$118


Carbon:

The Case for a Carbon Tax: Getting Past Our Hang-Ups to Effective Climate Policy


The Case for a Carbon Tax: Getting Past Our Hang-Ups to Effective Climate Policy


$37.43


There's a simple, straightforward way to cut carbon emissions and prevent the most disastrous effects of climate change-and we're rejecting it because of irrational political fears. That's the central argument of "The Case for a Carbon Tax," a clear-eyed, sophisticated analysis of climate change policy. Shi-Ling Hsu examines the four major approaches to curbing CO2: cap-and-trade; command and control regulation; government subsidies of alternative energy; and carbon taxes. Weighing the economic, social, administrative, and political merits of each, he demonstrates why a tax is currently the most effective policy. Hsu does not claim that a tax is the perfect or only solution-but that unlike the alternatives, it can be implemented immediately and paired effectively with other approaches. In fact, the only real barrier is psychological. While politicians can present subsidies and cap-and-trade as "win-win" solutions, the costs of a tax are immediately apparent. Hsu deftly explores the social and political factors that prevent us from embracing this commonsense approach. And he shows why we must get past our hang-ups if we are to avert a global crisis.

Environmental Law: Poaching, Carbon Tax, Natura 2000, Environmental Justice, Environmental Impact Assessment, Asbestos and the Law


Environmental Law: Poaching, Carbon Tax, Natura 2000, Environmental Justice, Environmental Impact Assessment, Asbestos and the Law


$24.95


Purchase includes free access to book updates online and a free trial membership in the publisher's book club where you can select from more than a million books without charge. Chapters: Poaching, Carbon Tax, Natura 2000, Asbestos and the Law, Environmental Impact Assessment, Environmental Justice, Nuclear-Free Zone, Illegal, Unreported and Unregulated Fishing, List of Environmental Lawsuits, Container Deposit Legislation, Illegal Logging, Right to Know, Earth Jurisprudence, Phase I Environmental Site Assessment, Ecotax, Air Rights, Ascobans, Pervious Concrete, Policy Reform, Environmental Policy, Environmental Crime, Wild Law, Environmental Planning, Green Stickers, Environmental Tariff, Best Management Practice for Water Pollution, Agreement on the Conservation of Albatrosses and Petrels, Agreement on the Conservation of Populations of European Bats, Regulation of Chemicals, Wingspread Conference on the Precautionary Principle, Public Trust Doctrine, List of Environmental Law Reviews and Journals, Marine Turtles in Africa Mou, Bonn Convention, Polluter Pays Principle, European Environmental Bureau, Iosea, European Chemicals Bureau, International Material Data System, Environmental Consulting, Big Ask Campaign, Bag Limits, Environmental Engineering Law, Public Interest Environmental Law Conference, Habitat Conservation Plan, Clean Tech Law, Critical Habitat, Waste Law. Excerpt: A carbon tax is an environmental tax that is levied on the carbon content of fuels (Hoeller and Wallin, 1991, p. 92). Carbon atoms are present in every fossil fuel (coal, petroleum, and natural gas) and are released as carbon dioxide (CO2) when they are burnt. In contrast, non-combustion energy sourceswind, sunlight, hydropower, and nucleardo not convert hydrocarbons to carbon dioxide. A carbon tax can be implemented by taxing the burning of fossil fuelscoal, petroleum products such as gasoline and aviation fuel, and natural gasin proportion to their ... More: http://booksllc.net/?id=84107

Americans Moving to Canada - How to Move & What You Need to Know for Stress Free Settlement with Your Tax and Financial Planning T


Americans Moving to Canada - How to Move & What You Need to Know for Stress Free Settlement with Your Tax and Financial Planning T


$20.74


As an American this book will help you to decide if you are the right candidate to move to Canada or not. If yes, then it offers you the necessary information about Canadian immigration system with your options to move. Then help on necessary planning for cross border issues that provides both challenges and opportunities. Canada has a well deserved reputation for having some of the highest marginal tax rates amongst the OECD countries. What most Canadians do not realize is that Canada has a well established regime of tax sheltering to attract new residents that it does not offer to its indigenous population. Canada is not just about a peaceful nation with universal health care system, clean air, low crime rate, no abortion laws, no death penalty, most respected nation, balanced education system or same sex marriages but with proper pre-immigration tax planning, wealthy individuals can move to Canada and avoid income and capital gain tax on their non-Canadian source income and capital gain producing assets. This book is especially designed for Americans moving to Canada for an effective, efficient and stress free settlement to save your precious time and hard earned wealth.

Canada and Israel: Building Apartheid


Canada and Israel: Building Apartheid


$9.19


A comprehensive study of Canada's ties to Israel, this investigation criticizes Lester Pearson's negotiations to create a Jewish state on Palestinian lands after World War II and denounces the tax deductions that encouraged Zionists in Canada to send money that is used for settlements on the West Bank. Additional discussion highlights the Canadian Security Intelligence Service and its ties to Israel's Mossad.

Tax This!


Tax This!


$18.71


This book is in New - Excellent condition

Broadcasting Policy in Canada


Broadcasting Policy in Canada


$33.94


Where did Canadian content regulations come from? What do international trade agreements mean for existing broadcasting policy and business practices? How are new media changing the face of broadcasting in Canada? Broadcasting Policy in Canada traces the development of Canada's broadcasting legislation and analyses the roles and responsibilities of the key players in the broadcasting system, particularly those of the Canadian Radio-television and Telecommunications Commission (CRTC). Robert Armstrong expresses with remarkable clarity the complicated changes to issues such as Canadian content, media regulation, and tax measures to provide a comprehensive overview of policies that have created the Canadian broadcasting system as it exists today. He also discusses related issues such as new media and the Internet, copyright, social concerns, and cultural diversity in a global media environment. Broadcasting Policy in Canada will serve as a valuable resource for students, policymakers, and industry players of all kinds who are affected by the CRTC's policies and decisions.

The Canadian Snowbird in America: Professional Tax and Financial Insights Into Temporary Lifestyles in the U.S.


The Canadian Snowbird in America: Professional Tax and Financial Insights Into Temporary Lifestyles in the U.S.


$10.18


This guide provides a comprehensive overview of financial-management issues for Canadians living in the United States in clear and simple language. Facing unique and challenging tax and financial-planning considerations in each country, this reference has in-depth information on the implications of opening bank and investment accounts in the United States, the management of investment and registered accounts in Canada, cross-border retirement planning, and foreign exchange issues. It includes information on recent changes to the Canada-U.S. income tax treaty and strategies to reduce or eliminate estate taxes on U.S. assets. Through improved awareness of the financial, immigration, health care, insurance, tax, and estate-planning differences between the two countries, snowbirds will learn to make smarter financial decisions and make the most of the dual-residency lifestyle.

The Carbon Charter: Blueprint for a Carbon Free Future


The Carbon Charter: Blueprint for a Carbon Free Future


$4.04


As mayors and city councilors seek solutions to climate change, existing policies and legislation can stand in the way of effective change. The Carbon Charter is the first book to describe the municipal bylaws required to abate climate change and create sustainable communities. It provides city councilors with a cut-and-paste set of green bylaws and policies of best practices culled from environmentally advanced communities around the world. They can be taken straight out of the book, placed into a council agenda with minimum modification, and voted on. The Carbon Charter provides city councilors with the ammunition they need to implement and accelerate sustainability initiatives quickly. The book describes bylaws that are applicable throughout the world, with the emphasis on examples that are beneficial to temperate climates such as the United States and Canada. It also proposes innovative new bylaws that are found nowhere else. This highly accessible, comprehensive handbook includes: Sample bylaws, case studies, and background material and references Numbered QuickLinks that allow readers access to full bylaw texts and links Special icons that pinpoint target audiences, with bylaws relevant to each audience This book will appeal to city councilors and mayors, municipal planners, architects, and engineers worldwide. Godo Stoyke is president of Carbon Busters Inc., an energy efficiency consultancy that has reduced carbon dioxide emissions of buildings in North America and Europe by 146 million pounds. Godo is a LEED(TM) Accredited Professional and the author of The Carbon Buster's Home Energy Handbook.

Cap and Trade: The Kyoto Protocol, Greenhouse Gas (Ghg) Emissions, Carbon Tax, Emission Allowances, Acid Rain So2 Program, Ozone T


Cap and Trade: The Kyoto Protocol, Greenhouse Gas (Ghg) Emissions, Carbon Tax, Emission Allowances, Acid Rain So2 Program, Ozone T


$37.42


Summary Table of Contents 1. "Cap and Trade: Essentials" EPA 2. "Cap and Trade: Multi-State NOx Programs" EPA 3. "Cap and Trade: Acid Rain Program Basics" EPA 4. "Annual Energy Outlook 2010 Early Release Overview Dec. 2009" EIA DOE 5. "Annual Energy Outlook 2010 Reference Case" EIA DOE 6. "The Role of Offsets in a Greenhouse Gas Emissions Cap-and-Trade Program: Potential Benefits and Concerns" CRS RL34436, May 18, 2009 7. "Potential Offset Supply in a Cap-and-Trade Program" CRS RL34705, Oct. 14, 2008 8. "Allowance Markets Assessment: A Closer Look at the Two Biggest Price Changes in the Federal SO2 and NOX Allowance Markets" EPA, Apr. 23, 2009 9. "Carbon Tax and Greenhouse Gas Control: Options and Considerations for Congress" CRS R40242, Mar. 10, 2009 10. "The Carbon Cycle: Implications for Climate Change and Congress" CRS RL34059, Feb. 18, 2009 11. "Measuring and Monitoring Carbon in the Agricultural and Forestry Sectors" CRS RS22964, Aug. 6, 2009 12. "Climate Change: The Role of the U.S. Agriculture Sector and Congressional Action" CRS RL33898, Nov. 9, 2009 13. "Forest Carbon Markets: Potential and Drawbacks" CRS RL34560, July 3, 2008 14. "Methane Capture: Options for Greenhouse Gas Emission Reduction" CRS R40813, Sept. 17, 2009 15. "Cars and Climate: What Can EPA Do to Control Greenhouse Gases from Mobile Sources?" RS R40506, December 9, 2009 16. "Aviation and Climate Change" CRS R40090, Aug. 4, 2009 17. "Cap and Trade Programs for Air Emissions" Clean Air Conf, Dec. 4, 2009 18. "Climate Change and the EU Emissions Trading Scheme (ETS): Kyoto and Beyond" CRS RL34150, Nov. 24, 2008 19. "Climate Change: Potential Regulation of Stationary Greenhouse Gas Sources Under the Clean Air Act" CRS R40585, Dec. 10, 2009 20. Testimony of David Sokol Before the House Subcomm. on Energy and Environment, June 9, 2009 21. Testimony of Dr. Richard Newell Before the Senate Comm. on Energy and Natural Resources, Oct. 14, 2009 22. Testimony of Robert Greenstein Before the House Subcomm. on Energy and Environment, Mar. 12, 2009 23. Testimony of Sonny Popowsky Before the House Subcomm. on Energy and Environment, Mar. 12, 2009 24. Testimony of Steven L. Kline Before the House Subcomm. on Energy and Environment Mar. 12, 2009 25. Testimony of Michael Carey Before the House Subcomm. on Energy and Environment, Mar. 12, 2009 26. Testimony of Dr. Denny Ellerman Before the Senate Comm. on Energy and Natural Resources, Oct. 21, 2009 27. Testimony of Gilbert Metcalf Before the Senate Comm. on Energy and Natural Resources, Oct. 21, 2009 28. Testimony of Karen Palmer Before the Senate Comm. on Energy and Natural Resources, Oct. 21, 2009 29. Testimony of Dr. Chad Stone Before the Senate Comm. on Energy and Natural Resources, Oct. 21, 2009 30. Testimony of Ray Kopp Before the Senate Comm. on E

Carbon Markets: An International Business Guide


Carbon Markets: An International Business Guide


$54.12


Covering the practical challenges of implementing the Kyoto Protocol's Clean Development Mechanism, carbon offsetting strategies and the EU Emissions Trading Scheme (EU ETS) and more, this book is the most comprehensive and accessible guide to understanding the opportunities offered by regulated and voluntary carbon markets for tackling climate change. Coverage includes: an overview of the problem of climate change, with a concise review of the most recent scientific evidence in different fields; a highly accessible overview of the economic theory and different constitutive elements of a carbon allowances market; explanation of the Kyoto Protocol's flexibility mechanisms; explanation of how the EU Emissions Trading Scheme works in practice; coverage of regulated carbon markets in Australia, New Zealand and South Africa; ongoing developments in regulated carbon markets in the USA, Canada, and Japan; global voluntary carbon markets.Combining theoretical aspects with practical applications, this book is for business leaders, financiers, carbon traders, lawyers, bankers, researchers, policy makers and anyone interested in market-mechanisms to mitigate climate change.

A Globally Integrated Climate Policy for Canada


A Globally Integrated Climate Policy for Canada


$39.12


Canada has been an engaged participant in global climate change negotiations since the late 1980s. Until recently, Canadian policy seemed to be driven in large part by a desire to join in multilateral efforts to address climate change. By contrast, current policy is seeking a 'made in Canada' approach to the issue. Recent government-sponsored analytic efforts as well as the government's own stated policies have been focused almost entirely on domestic regulation and incentives, domestic opportunities for technological responses, domestic costs, domestic carbon markets, and the setting of a domestic carbon 'price' at a level that sends the appropriate marketplace signal to produce needed reductions. A Globally Integrated Climate Policy for Canada builds on the premise that Canada is in need of an approach that effectively integrates domestic priorities and global policy imperatives. Leading Canadian and international experts explore policy ideas and options from a range of disciplinary perspectives, including science, law, political science, economics, and sociology. Chapters explore the costs, opportunities, or imperatives to participate in international diplomatic initiatives and regimes, the opportunities and impacts of regional or global carbon markets, the proper mix of domestic policy tools, the parameters of Canadian energy policy, and the dynamics that propel or hinder the Canadian policy process.

Legal, Tax & Accounting Strategies for the Canadian Real Estate Investor


Legal, Tax & Accounting Strategies for the Canadian Real Estate Investor


$25.84


"Legal, Tax and Accounting Strategies for the Canadian Real Estate Investor" begins and ends with the premise that buying property in Canada can be a smart, safe and successful way to invest your money. However, like most things in life, success requires hard work. You need to do your homework, understand what you are buying, and know the pros and cons of various decisions. Most importantly, you also need to know how to structure and maintain your investment. That's where we come in. Experience is a good teacher-but its lessons can be nasty and, in the real estate business, mistakes can cost you big bucks. Our goal with this book is to help you do it right-the first time. Rest assured that this book covers a vast range of topics and you're going to appreciate its breadth and depth if you're wondering about things like whether: You should opt for a sole proprietorship versus a partnership or corporate ownership strategy. There are things you can do to manage the way HST impacts your real estate investment business. You need information about the tax implications of a real estate disposition. You can change your bookkeeping system to better meet your needs and those of your accountant. Who Are We? This book was written by two individuals whose collective experience in helping Canadians make wise property investment decisions spans several decades. Steve Cohen is a securities lawyer with a great deal of experience in the real estate sector. George Dube is a chartered accountant whose knowledge is based on many years of helping clients with their property buying needs. Both Steve and George are real estate investors themselves. Working from this foundation, we have put together the definitive guide on how to build a successful real estate portfolio in Canada from a legal, tax and accounting perspective.

Climate Change in Canada


Climate Change in Canada


$24.23


A significant number of Canadians believe that climate change is the biggest threat facing the world today. Climate change is now more than a scientific debate; it is a matter urgently discussed in the realms of politics, geography, and economics. Rodney White, former Director of University of Toronto's Institute for Environmental Studies, is uniquely placed to write this short, accessible introduction to one of the most important issues facing us all. What is most likely to happen in Canada? From melting permafrost and falling water levels in the Great Lakes to extreme weather events, White guides us through the latest science and expert predictions. He also explores the politics involved, from the Kyoto process to the approach taken in the United States by the new Obama administration. He evaluates the probable future of business and economics: clean technology, carbon markets, and "weather" markets. What has been Canada's response to the challenges and the opportunities? And finally, looking forward to future solutions-from the international to the personal-White reminds us of the price of inaction. Up to date and engaging, this is perhaps the most important book for Canadians to read this year.

carbon tax canada


Regulating greenhouse gases in Canada: constitutional and policy dimensions.: An article from: McGill Law Journal


Regulating greenhouse gases in Canada: constitutional and policy dimensions.: An article from: McGill Law Journal


$9.95


This digital document is an article from McGill Law Journal, published by McGill Law Journal (Canada) on September 22, 2009. The length of the article is 27680 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Regulating greenhouse g...

Canada needs to act on climate change now: an open letter to the leaders of Canada's federal political parties.: An article from: Inroads: A Journal of Opinion


Canada needs to act on climate change now: an open letter to the leaders of Canada's federal political parties.: An article from: Inroads: A Journal of Opinion


$9.95


This digital document is an article from Inroads: A Journal of Opinion, published by Inroads, Inc. on January 1, 2009. The length of the article is 2159 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Canada needs to act on climate...

HST tax Birthday Present to 4th Carbon Tax for BC from THE STEVEN HARPER GOVERNMENT on CANADA DAY"

Why cap-and-trade instead of a carbon tax?

Why cap-and-trade instead of a carbon tax?
(Abhishek Uppal)

Some local governments (e.g. Boulder, Colorado, USA; British Columbia, Canada) and early-action countries (Sweden, Finland, and Netherlands in the 1990s) have implemented carbon taxes. Over time, however, a cap-and-trade orientation has begun to dominate policy approaches.

In simple terms, a cap-and-trade sets a target for emissions in a geographic region consistent with a carbon stabilization level (i.e. 450 ppm). The cap is then pushed down to individual industries and companies that are given permits to emit that can be traded. These permits can be auctioned or provided for free. In either case, for markets to function properly, clear rules of private ownership must be established for what was, initially, a public good. Once emissions permits have been allocated, companies can then trade excess or deficits in their permits. The trading system can also include credits from other geographies. There are other important issues, such as sector coverage and banking and borrowing of credits that are important parts of the architecture of cap-and-trade regimes.

While either a tax or a cap-and-trade system can address greenhouse gas reductions, cap-and-trade has a number of advantages. Cap-and-trade drives efficient mitigation by encouraging businesses with inexpensive mitigation opportunities to reduce emissions as much as possible and sell excess credits to businesses with higher marginal mitigation costs. It allows Ricardo's theory of comparative advantage to work with emissions mitigation. We recognize that markets with public goods are less efficient than standard markets, but believe that the advantages of a market approach outweigh the disadvantages. The result of a carbon market - even one with suboptimal efficiency - is that those who can reduce emissions most efficiently are able to free up resources for those who cannot, and emissions reductions are therefore achieved at the lowest total cost to the economy.

A cap-and-trade system also allows the market to set the appropriate price of carbon, whereas in a tax regime, regulators would need to try to derive that price. The principal disadvantage of cap-and-trade is that price is less certain, and there is potential volatility. Inclusion of flexible mechanisms in a cap-and-trade regime, such as offsets, banking and borrowing, brings measures of stability to the market and mitigates the biggest disadvantage of cap-and-trade. Clear signals from regulators - which are at the origin of demand for carbon credits - can also help to bring long-term stability to the markets. While faith in market mechanisms has been shaken by the credit crisis, and there has been talk that could potentially lead to more focus on a carbon tax rather than a cap-and-trade regime, we believe that the benefits of cap-and-trade outweigh the disadvantages.

While the UNFCCC and Kyoto Protocol do not specify that carbon must be priced, the Kyoto Protocol includes explicit mechanisms to permit emissions trading. Policy options such as the Clean Development Mechanism and Joint Implementation enable international cap-and-trade mitigation at least cost. Through these mechanisms - and the growing European Union Emissions Trading Scheme (EU-ETS) - cap-and-trade is growing in prominence year by year. The International Carbon Action Partnership (ICAP), which shares best practice in carbon trading schemes across borders, and other initiatives are promoting global linkages between and scaling of cap-and-trade regimes. The US is looking at its options for creating a cap-and-trade system through the Liebermann-Warner and the Dingell-Boucher bills, and as well as other proposals before the House and Senate. The importance of a robust global solution continues to grow.

Why carbon pricing isn't enough at the initial stage.
While in theory, an adequate carbon price should be all that is required to achieve efficient mitigation. In the real economy, this is not always the case.

There are a number of mitigation policy options that are viable at a negative carbon price in 2030 (i.e. they save costs). Many of these opportunities - such as improved insulation - are economic today. In a perfectly efficient market, these mitigation policy options should already be ideally fully utilized and profitable even without a carbon price. While the recent rise in energy prices has led to an increase in uptake of these measures, as reported in The Observer on August 3, 2008, we are far from capturing the total potential savings represented by energy efficiency.
The fact that these methods are still not fully employed demonstrates that, for a variety of reasons (lack of information, short-term up-front costs and other behavioural factors), carbon prices may not be sufficient initially to promote adequate greenhouse gas mitigation in the real world. This leaves a role for energy efficiency standards and some incentives. At the other end of the curve, some technology solutions are currently very expensive and innovation theory suggests they should be incentivized directly.

Carbon pricing is only one part of the solution, and that the regulatory policies used in traditional regulation and innovation policy are both vital tools in the climate change toolkit. Carbon pricing is only one part of a strategy to tackle climate change. It must be complemented by measures to support the development of technologies, and to remove the barriers to behavioural change, particularly around take-up of energy efficiency.

Long-term optimal carbon price
Using carbon prices alone to incentivize the early development of emerging technologies - some of which could require carbon prices of nearly €100/ton to prompt inefficient, as such a high carbon price may put a disproportionate drag on the overall economy. This would also entail enormous transfer payments - potentially larger in scale than those that flow from the OECD to petroleum exporting countries today. The recipients of these payments would benefit from enormous windfall profits at very high carbon prices. And the poor may be hit harder than the rich, as carbon pricing is without compensating transfer, a regressive tax. This is unlikely to be politically or socially acceptable, unless it comes about gradually.

"Optimum" or even "acceptable" long-term carbon prices are therefore likely to be well below €100/ton, although during the process of establishing the trend, they may spike to high levels if the market does not move fast enough towards mitigation. Other regulatory instruments, such as R&D subsidies, can be used to drive innovation of what are currently more expensive opportunities such as CCS; this will allow government to buy promising technologies down the learning curve without subjecting the entire economy to very high carbon prices. The economy-wide costs of the subsidies and incentives associated with such a policy are likely to be much lower than the economic drag associated with a very high carbon price.

Therefore, climate change mitigation policy will need to include two distinct sets of regulation to compliment carbon pricing: Traditional regulation and innovation policy. These policy options will overcome market failures and prevent imposition of an initial carbon price so high that it could have negative consequences for the entire economy.

About the Author

Abhishek Uppal college graduate from Cornell University.