New Report Says Carbon Dividends Would Benefit Manitoba Families
OTTAWA, Oct. 17, 2018 /CNW/ - Today, Canadians for Clean Prosperity released new data showing that households in Manitoba 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.
Recently, Premier Brian Pallister announced that Manitoba will not be pricing carbon as planned. The federal government has said it will impose a carbon tax backstop in provinces that refuse to implement their own systems under the with the federal government's Greenhouse Gas Pollution Pricing Act. 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.
New research from Canadians for Clean Prosperity, a nonpartisan organization which promotes market-based solutions to environmental problems, and economist Dave Sawyer of EnviroEconomics, reveals the impacts of a carbon fee and dividend on Manitoba's citizens, should the federal government choose to return all revenues directly to citizens when the backstop takes effect in 2019.
The research shows that if the federal government returns all revenues raised in Manitoba 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 Manitoba in 2020 could expect to pay about $332 in carbon tax, but receive $593 in carbon dividends, leaving a $261 surplus. Lower income families would come out even further ahead on average.
"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."
A summary of the study and the economic background document can be found online at: carbon-dividends.ca
SOURCE Canadians for Clean Prosperity
Mollie Anderson, [email protected], 6478232155
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