This month CBC wrote an article on how British Columbia took the lead in Canada on applying a carbon tax without having an economic drawback.

Pollution pricing had its unpopular beginning with the public, where some institutions such as the Fraser Institute had disagreed on the tax arguing that it turns away investors. However, research suggests that the tax has been effective.

Professor Sumeet Gulati suggests that the carbon tax has changed consumer behaviour and that without the tax, BC’s emissions would be higher by at least 7% per person. The province has set a goal to reach $50 per tonne by 2021, which would cover approximately 70% of greenhouse emissions in the province. Dr. Gulati also proposes that the price should keep increasing to reach rates up to $75 to about $100 per tonne.

You can read CBC’s news article regarding BC’s Carbon Tax here. Additionally, you can read more about Dr. Gulati and his research interests here.