New Report Says Carbon Dividends Would Benefit Canadian Families

OTTAWA, Sept. 24, 2018 /CNW/ - Canadians for Clean Prosperity has released a new report showing that most households would receive more money in the form of carbon dividend cheques than they would pay in carbon taxes, if the federal government brings in carbon dividends in those provinces in which it brings in its carbon tax "backstop" starting in 2019.

"Carbon dividends show that it is possible to fight climate change and save money," said Mark Cameron, Executive Director of Canadians for Clean Prosperity. "Our findings show that if the federal government returns all carbon revenues on an equal per capita basis, almost all households, regardless of family size or income level, will come out ahead – and the lowest income households will benefit the most."

Several provinces, particularly Ontario and Saskatchewan, have said that they will not bring in a carbon pricing plan. The federal government has said it will impose a carbon tax "backstop" in those provinces. The tax will start at $20 per tonne in January 2019, and rise to $50 per tonne by 2022. Federal law requires the federal government to return all of the revenues collected from the carbon tax backstop back to the province or territory it is collected from. However, Prime Minister Justin Trudeau and Environment and Climate Change Minister Catherine McKenna have said that Ottawa will send money directly to households in those provinces, rather than to their provincial governments.

Canadians for Clean Prosperity, a nonpartisan organization which promotes market-based solutions to environmental problems, commissioned economist Dave Sawyer of EnviroEconomics to calculate whether families would come out ahead or behind if the federal government brings in carbon dividends. The study analyzed the results for the provinces of Ontario, Saskatchewan, and Alberta.

The study showed that if the federal government returns all revenues raised in each province directly to households (aside from a portion of the revenues returned to large industries in high emitting, internationally competitive sectors), that almost all households will receive more back in carbon dividends than they would pay in carbon taxes. For example, a middle-income family in Ontario in 2020 could expect to pay about $340 in carbon tax, but receive $517 in carbon dividends, leaving a $177 surplus. In Saskatchewan, an average family would pay $467 but receive $1567 back, for a gain of $1100. Lower income families would come out even further ahead on average.

A summary of the study and the economic background document can be found online at: carbon-dividends.ca

SOURCE Canadians for Clean Prosperity