Keen

• But economists are hardly infallible experts on the carbon tax and other fiscal measures implemented by governments.
• While the carbon tax increase kicked in, the Alberta fuel tax was hiked by 13 cents the same day.
• In other words, the carbon tax has been a blessing for Smith as she deflects attention away from her own government’s role in raising gas prices.

Double standards

• For instance, some homeowners have blamed the carbon tax for higher electricity bills in Alberta, ignoring the fact that the carbon tax does not apply to the electricity sector.
• Double standards abound on the carbon tax.
• While protesters chant “Axe the tax,” they ignore that fossil fuel subsidies cost them more than the carbon tax.

Textbook economics backs carbon tax

• As an economics instructor, a key lesson is that the carbon tax is the least costly method to address carbon emissions.
• In my pedagogical paper on climate change, I refer to McGill University economist Chris Ragan, who states that the carbon tax is more efficient than regulation.
• But the carbon tax incentivizes investment in new technologies to limit the tax payment.

The limits of textbook economics

• The way textbook economics approaches climate change through externalities suggests it’s simply a minor aberration.
• Energy and raw materials are ignored, which means that biophysical or ecological limits are disregarded in the pursuit of growth.
• Keen argues that mainstream economics assumes 90 per cent of GDP will be unaffected by climate change.
• In short, he argues, mainstream economics has been complicit in the existential crisis of climate change.

Radical solutions

• But it may be too little too late, necessitating radical solutions beyond the carbon tax.
• In this regard, Keen argues that carbon pricing is not enough, calling for carbon rationing.
• This happens by going beyond textbook economics and technical jargon by highlighting the ecological and biophysical limits to growth.

I am not affiliated with any organization. Though, I have in the past done research assistance work for the Parkland Institute.