Skip to content

A carbon tax and its effects

Premier Rachel Notley of Alberta will be implementing a carbon tax in Alberta in the near future. A carbon tax is a levy paid per unit of carbon dioxide emission. A unit of carbon dioxide emission is one particle of carbon dioxide (CO2).

Premier Rachel Notley of Alberta will be implementing a carbon tax in Alberta in the near future. A carbon tax is a levy paid per unit of carbon dioxide emission. A unit of carbon dioxide emission is one particle of carbon dioxide (CO2).

At present the Green House Gas emissions (GHG) from the Alberta oil-sands account for 8.7 per cent of Canada’s total GHG. Under the former PC government in Alberta, this province became the first jurisdiction in North America to legislate GHG emissions reductions for large industrial facilities by passing the Specified Gas Emitters Regulation (SGER). Between 1990 and 2012, oil-sands producers reduced per-barrel emissions by an average of 28 per cent (according to Environment Canada). Will this levy be cancelled when the Carbon Tax takes effect? There has been no indication of whether this will or will not be changed.

The new premier during the recent election did not mention about an NDP Government levying a carbon tax for Alberta. Did the premier have this on her platform before the last election and was reluctant to speak of it? In making the announcement, Premier Notley was accompanied by CEOs from several energy companies who all supported the tax and now want to do their part to eliminate CO2 emissions. If this is so, and there seems to be no reason to believe otherwise, why were these same companies not doing their part to eliminate CO2 emissions before now? Wouldn’t it seem appropriate to tax the energy companies so that they will find ways to eliminate CO2 emissions so that their product can go to market CO2 free?

The proposed carbon tax will cost Albertans about $3 billion dollars annually. The premier states that the entire amount taxed will remain in Alberta to provide incentive for some entrepreneurs and to compensate others. Can we be sure of that? Is it wise to levy a costly tax, just to give it back? I leave that for the reader to decide.

The premier’s plan is to eventually close down all coal-fired power generating plants in Alberta, and replace them with gas fired plants. This is a noble idea but there may be better alternatives. For example, The Boundary Dam Power Station near Estevan, Saskatchewan, has been refurbished at a reasonable cost and is now, still using coal, producing power for sale while at the same time recapturing 90 per cent of its carbon emissions which it sells to oil companies to pump underground to increase oil production. It is emitting fewer carbon emissions than a comparable gas-fired plant. It would seem to be a capital idea to research whether or not our coal-fired power plants in Alberta could be refitted in the same manner as the ones in Saskatchewan.

As well it would be good to know that if the Notley government intends to follow the Ontario government’s problematic lead on climate change.

First of all, Ontario never did rely very heavily on coal fired plants for power. Since they have closed all of their coal-fired power plants in Ontario, electricity rates have increased over 88 per cent (During the same period, Alberta’s rates have only increased 16 per cent). It should also be noted, that because of the high power costs, many corporations have left Ontario to relocate south across the US border taking advantage of lower power rates as well as lower operating costs. The effect on Ontario of course has been high unemployment.

If coal is no longer required for firing power generators, will the mines also be closed? If so at what cost to the province? It would seem that as long as there is overseas demand for coal, it would still be mined.

It seems only reasonable that the mine-owners will not close their operations without being well compensated. Of course this would be a colossal expense to Albertans.

The carbon tax may generate more incentives to find cheaper and cleaner types of power and I hope that it does. Wind power and solar power have a long distance to go to replace the coal fired power plants to supply enough power for Alberta’s demands.

It is possible that someone will develop a small six inch dish that would be capable in one day of collecting and storing enough power to supply a households needs for one month in the winter. This possibility could be soon, and it may be a way off, however it would be a boon!

The Notley government claims that we will pay $3 billion dollars in tax the first year and that she is sure that Albertans will willingly pay that tax.

It would appear that nobody at any time would like to pay a tax on anything. People pay taxes not because they want to but, because taxes are necessary to maintain society’s institutions and infrastructure. The carbon tax will have an effect on everything from fuel at the pump, farm fuels, the cost of producing food and delivery of same. Who will qualify for the rebates that Premier Notley talks about?

Will there be a rebate on farm fuels, rebates for those who drive long distances to make their living, rebates for the working parents who drive their children to school? It will be expensive to implement the tax and equally expensive to pay government employees to calculate and send out rebates.

The carbon tax will affect everyone and especially the low income earner because any tax that the government imposes will surely be passed along and it is only reasonable that it will not affect the high income earners as much as those earning lower incomes.

One wonders if the carbon tax isn’t another form of a provincial sales tax.

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks