Carbon taxes get the market to tell the environmental truth. Stewart Elgie.
British Columbia is the only jurisdiction in North America with a revenue-neutral carbon tax that taxes greenhouse gas emissions (GHGs) from individuals and businesses alike. The tax was announced in February 2008 and was implemented in July 2008 at a rate of $10 per tonne of CO2, rising in $5 annual increments to the current price of $30/tonne. It is designed as a revenue-neutral tax, meaning that all carbon-tax proceeds collected by the government are returned in the form of income tax cuts and rebates. The tax is now raising over C$1.2 Billion per year, about C$270 per person, and the proceeds are distributed roughly equally between personal and business tax reductions.