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Deniers and doomers are leading the carbon tax opposition

We’d all like to believe someone else should pay to fix this mess. But fixing climate change demands a transition across all sectors of an economy that still largely runs on fossil fuels. Photo by Ion Ceban/Pexels

The annual carbon tax increase on April 1 has prompted the usual flurry of opposition, amplified by Conservative Leader Pierre Poilievre’s “axe the tax” rallies. But what’s new this year is that even some former provincial carbon tax supporters are throwing in the towel.

Both positions rest on denial.

Much has been written about the selective and exaggerated arguments of the axe-the-tax camp. Conservatives and other opponents usually neglect to mention that eliminating the carbon tax (a.k.a. “fuel levy”) would also mean eliminating the tax rebates. Contrary to the argument that the carbon tax is increasing the cost of living, the federal carbon tax system in eight provinces puts money in most families’ pockets by delivering rebates greater than their carbon tax payments.

Most Canadians don’t believe that, but it’s easy to check. Anyone can calculate their family’s tax payments by multiplying gasoline and natural gas consumption by carbon tax rates per unit of each fuel (or just use this online calculator). In provinces subject to the federal carbon tax, quarterly rebates are delivered to one adult per household, usually via direct deposit. Rebates will increase in April by the same percentage as the tax.

What about inflation? The Bank of Canada estimates the carbon tax accounts for 0.15 per cent inflation, a tiny fraction of cost-of-living increases that have battered Canadian families in recent years. Even fuel price increases are mostly due to Russia’s invasion of Ukraine, not the carbon tax. Calls to suspend the April 1 increase at best ignore the real causes of the affordability crisis, and at worst seek to win Canadians’ support via false solutions.

Calls to suspend the April 1 increase at best ignore the real causes of the affordability crisis, and at worst seek to win Canadians’ support via false solutions, write @simondonner and @ProfKHarrison @UBC #CarbonTax #cdnpoli

But what about that Parliamentary Budget Office report that concluded the combination of carbon tax payments and “economic costs” of pollution reductions in response to the tax will exceed the rebates by 2030? PBO’s analysis simply ignored corresponding benefits, including subsidy programs for EVs and heat pumps, healthier air and the impact of Canada’s contribution to mitigating climate change. The benefits the PBO ignored are the whole point of the carbon tax — or any other climate policy.

Unlike the axe-the-tax camp, the towel-throwers accept overwhelming research that finds carbon taxes work, but they’re weary of the political battle. It doesn’t bode well for our democracy if politicians concede that Canadians will be won over by misleading or false claims. But for now, let’s consider what those who support climate action propose as the alternative to a carbon tax.

The case for regulation instead of a carbon tax is that although it is a more costly way to reduce emissions, it garners more political support. Few are willing to state the quiet part out loud — regulations generate less opposition because many voters are oblivious that the costs of emissions reductions will be passed on to them as consumers.

Regulation works. We applaud the host of measures in place and under development to complement the carbon tax. But after decades of studying environmental regulation and climate policy, we fear that a real carbon tax is being incorrectly compared to an idealized vision of regulation.

Regulation is slow. To replace the carbon tax, Canada would need many different regulations to cover diverse emissions sources, from barbecues to furnaces, lawnmowers to transport trucks, small houses to commercial buildings. Each must be technically detailed. We’ve never seen a regulation finalized in less than four years. Given that, axing the carbon tax can be expected to set Canada back several years as we try to make up the lost emissions reductions.

Regulations need to be regularly updated to drive continued emissions reductions. When the first generation of environmental regulations was adopted in the 1970s, the plan was to update them every five years. It didn’t happen, not least because each of the regulations took about five years to develop. Infrequent revision not only slows progress in reducing emissions, but weakens business incentives to invest in technological innovation.

Regulation is also more challenging politically than it seems. Industries, facing the prospect of regulation, lobby to weaken proposals. Invariably, concessions are made along the way. But because the devil is in the very technical details, they tend to be underreported (if at all), with voters none the wiser.

While consumers today may be oblivious to the costs that will be passed on to them, industries anticipating declining sales or product bans will alert consumers and invest in campaigns to rally public opposition. They’re no more likely to fight fair than carbon tax opponents. “Spike the hike” will be replaced by “They’re coming for your barbecue.”

We’d all like to believe someone else should pay to fix this mess. After all, we’ve played by the rules, worked hard and paid our taxes. Alas, fixing climate change demands a transition across all sectors of an economy that still largely runs on fossil fuels. Big industrial polluters contribute less than half of Canada’s emissions. The rest are small sources like homes, motor vehicles and small businesses.

The choice Canadians face is not between our current lives with and without a carbon tax. It’s whether to invest in mitigation today to avoid worse impacts of climate change in the future — and creating a competitive low-carbon economy while we’re at it. It’s akin to investing in RRSPs or RESPs, which also entail modest payments today to ensure a better future.

Canada may end up “axing the tax,” and in so doing, taking money away from the majority of Canadian households. There are other ways to achieve our climate goals. But at the end of the day, there is no magical policy that will reduce carbon pollution without costs.

And the viability of any approach will turn on Canadians’ willingness to make modest changes in our lives. Both the axe-the-tax camp and the towel-throwers are choosing short-term political wins over an honest conversation with voters about their role in building Canada’s future.


As an associate professor of climatology at the University of British Columbia, Simon Donner studies why the climate matters to society, as well as ecosystems like coral reefs. His group’s work provides insight into the causes and effects of climate change, public attitudes, policy options at home and abroad and what can be done to adapt.

Kathryn Harrison is a professor of political science at the University of British Columbia. She has a bachelor’s degree in chemical engineering from the University of Western Ontario, master’s degrees in chemical engineering and political science from MIT, and a PhD in political science from UBC. Harrison studies environmental, climate and energy policy, federalism and comparative public policy.

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