Read it and weep Ontario be sure to read it all

Carbon pricing is the sad political football that gets kicked down the field come election time. Most economists and sensible corporations in Canada supports putting a price on carbon—why tax income and profit, when you can tax carbon pollution instead? It is so blindingly obvious to anyone with even a modicum of economic sense. Unfortunately, economic sense does not drive voters nor politics. Certainly not the new Ontario government.

An illuminating look at what Doug Ford just did to Ontarians' energy bills

The Ecofiscal Commission, a group of eminent Canadian economists has provided convincing research on the economic benefits of pricing carbon and the conservative-leaning Canadians for Clean Prosperity supports a carbon tax. CEOs of oil companies in Alberta support Alberta’s carbon price system, and the Canadian Council of Chief Executives support carbon pricing, too. This week a new campaign led by U.S. Republicans called 'Americans for Carbon Dividends' came out in favour of a carbon tax. The question is, why isn’t Doug Ford? The cynical answer is that any politician can stand up and say I’ll get rid of a tax and get elected. Another possibility is that even a cut-out poster of a politician would have beat Kathleen Wynne, and that Doug Ford’s opinion on carbon pricing was immaterial.

If there is one thing we have learned watching politicians play with electricity, it is that we are the ones who get burned, (they tend to go down in flames.) #analysis by @brucelourie #ONpoli #canpoli

Either way, the implications for the Conservatives are serious. Scrapping Ontario’s cap and trade system (we don’t actually have a carbon tax, that was part of the misinformation campaign) will be “messy and costly” according to the Ecofiscal Commission. Recall that Dalton McGuinty cancelled a gas plant for political reasons costing Ontarians up to a billion dollars. And the Tories went to town, for years, like dogs with a bone. That experience will pale by comparison to the political folly of Doug Ford cancelling cap and trade, with early estimates showing a figure that will likely exceed $4 billion in compensation, legal fees, penalties, administrative costs and who knows what else. And it will probably take four years to disentangle from the agreements in place with California and Quebec, not to mention the hundreds of major Ontario companies benefiting from the system. Many have already signalled a move out of Ontario into friendlier jurisdictions, taking jobs and investment with them. And these are the companies of the future, but sadly not Ontario’s. Good luck explaining that one next time around to the voters who thought they were getting lower taxes.

Read more: https://www.nationalobserver.com/2018/06/21/analysis/bruce-lourie-doug-fords-scrap-and-pay-plan-explained