Price on carbon key to Canada tackling global warming

Categories: Big picture
Published on: April 15, 2015

The Guardian / Dana Nuccitelli / 15 April 2015

Acting on Climate Change65 researchers from provinces across Canada have published a report, Acting on Climate Change, that details how the country can successfully decarbonize its electric grid to slow global warming.

The team unanimously endorsed putting a price on carbon pollution as a key strategy. Without a carbon fee, the price of electricity on the market doesn’t reflect its true costs to society. This is a market failure that economists call an “externality,” where the costs associated with a product (in this case, damages incurred via climate change) aren’t captured in its market price. Instead they’re paid by taxpayers in what could be considered a massive subsidy to the fossil fuel industry.

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