New Report Says Carbon Dividends Would Benefit New Brunswick Families
OTTAWA, Oct. 17, 2018 /CNW/ - Today, Canadians for Clean Prosperity released new data showing that households in New Brunswick would receive more money in the form of carbon dividend cheques than they would pay in carbon taxes, if the federal government brings in its carbon tax backstop starting in 2019.
Currently the Province of New Brunswick has opted to comply with the federal government's carbon pricing legislation by dedicating a portion of its existing fuel tax toward climate change mitigation initiatives. It is unclear yet whether or not the federal government will deem this plan adequately compliant with their legislation, and the government's minority position in the legislature makes the future of this plan uncertain. The Progressive Conservative opposition has indicated that it intends not to proceed with carbon pricing if it is asked to form a new minority government.
Should the federal government step in, 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 New Brunswick's citizens, should the federal government's plan take effect in 2019.
The research shows that if the federal government returns all revenues raised in New Brunswick 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 New Brunswick in 2020 could expect to pay about $403 in carbon tax, but receive $645 in carbon dividends, leaving a $242 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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