Federal Government Consequence Map (Resources (Murray, B., & Rivers, N…
Federal Government Consequence Map
Canada would be establishing itself in the international community as a country that is taking initiative to combat climate change
It could be argued that the government has an ethical responsibility to ensure the safety and protection of its citizens. Climate change threatens the safety of future generations, so taking measures to combat climate change is part of the role of the government
Emissions heavy industries will likely be negatively impacted (i.e. the cement industry, agriculture) (Murray & Rivers, 2015).
There will be positive impacts on other industries which causes a relatively neutral impact on the economy (Government of Canada: Climate Change Canada, 2018; Murray & Rivers, 2015).
If the tax is revenue neutral then the Double Dividend Hypothesis could occur if the funds are redistributed to lower income households, resulting in a boost in the economy in addition to reducing greenhouse gas emissions (Murray & Rivers, 2015).
Climate change has already cost Canadians billions of dollars. If we do not address climate change, the estimated costs could be over 40 billion dollars a year (Environment and Climate Change Canada, 2016).
Studies have shown that a carbon tax implemented in BC reduced emissions by 5-15% (Murray & Rivers, 2015).
If emissions are reduced nationally, there could be improvements to the total environment of Canada
Cost of items such as gasoline and natural gas will be subjected to a tax, which could affect cost of living (Murray & Rivers, 2015).
If the imposed tax is revenue neutral then there will be funding available to help those of lower socio-economic status (Murray & Rivers, 2015).
It is challenging to determine what exact amount would generate the desired results, so could cause some people hardships if not set at the optimum level (Murray & Rivers, 2015).
Provinces could oppose the Federally imposed tax (CBC News, 2018).
Ontario has filed a motion to the Federal Court of Appeal to challenge the constitutionality of the Greenhouse Gas Pollution Pricing Act (Government of Ontario, 2018).
Corporations that oppose the tax could take legal action against the government
Opposition from citizens could cause a change in governing party come election time
Murray, B., & Rivers, N. (2015). British Columbia’s revenue-neutral carbon tax: A review of the latest “grand experiment” in environmental policy. Energy Policy, 86, 674-683.
Government of Ontario, Ministry of the Attorney General. (2018, September 7). Notice of Ontario's Reference for Federal Greenhouse Gas Pollution Pricing Act [Press release]. Retrieved from
Government of Canada: Climate Change Canada. (2018, October 26). Fall 2018 update: Estimated impacts of the federal pollution pricing system. Retrieved from
Canada, Environment and Climate Change Canada. (2016). Pan-Canadian Framework on Clean Growth and Climate Change : Canada's Plan to Address Climate Change and Grow the Economy. Retrieved from
CBC News. (2018, August 01). Liberals plan to soften carbon tax plan over competitiveness concerns | CBC News. Retrieved from