It's been a month since Canada's federal consumer carbon price was eliminated. With the latest data from this morning, the effect on gasoline prices remains clear: nearly the full value of tax cut was passed to consumers. #cdnecon
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Maybe we should focus less on the price of gasoline and try to build vehicles and buildings that are much more fuel-efficient. Consumers will then spend less, governments will have less administration bs to handle, and there will be less emissions without impact on lives or the economy.
I drive a small hybrid so this is a non starter for me. A whole lotta climate denying whiners; when I burn in 5 minutes. In the 80’s I could lay on the beach all day
Same. I think the most I've paid for a fill from nearly empty, since getting it, is $40.
Funny how it's the ones who drive those giant gas guzzling trucks...not as work trucks, but just to go get groceries or whatever...bitch the loudest. It's their own fault they pay $110 per fill every other day.🙄
I expected this as it would be too public to do this in a competitive marketplace. Is there any industry that could have kept the pre-cut price in the supply chain?
I highly recommend that you start on Bertrand competition. The basic principle is that homogeneous goods have close to perfect competition outcomes under imperfect competition. Gas is a good example.
I don’t really understand the point of a tax and then rebates. Not trying to be obtuse, it just seems like it adds lots of admin on government and consumer for unclear gains.
Three major points
1) High prices even when rebated have an impact on buyer behaviour
2) The rebate is fixed so the more you cut your usage the more of the rebate you bank.
3) Wasteful users and the wealthy pay more than they get back.
No problem, and because you don't drive you would have definitely banked a good portion of the rebate. When I lived in AB I had small car and relatively small home and we came out ahead.
You're not alone. The Liberals are terrible at marketing.
The tax or price on carbon incentivizes fossil fuel consumers and producers to find alternatives. The rebate for consumers mitigated the transitional pain. The Liberals failed to explain it and appropriately label the rebate cheques.
Effectively a transfer from the folks who have a larger than average carbon footprint, to those who have a smaller than average footprint or who take steps, often using government grant programs, to mitigate their carbon. it's a true market mechanism that is politically untenable due to partisanship
And re the info in Tombe's article, Andrew Leach nails the essential issue here (the big lie in ALL of Pierre Poilievre's DISinformation campaign against carbon pricing):
I have read, and I did share it widely when Trevor wrote it several years ago. I don't think the Trudeau government did a good job in promoting understanding until the very end, but in combination with high inflation and huge cost of living concerns, it was too easy to politically weaponize.
They didn't market it at all.
Knowing the oil industry and conservatives would weaponize it.
Liberals, like Democrats suck at marketing and cannot afford to suck at it.
Is there any good reason why, with the $C rising ~$.02 and price of oil dropping ~10 bucks (both of which should lead to a gasoline price decrease), the pump price in urban BC has taken back about half the original drop?
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Funny how it's the ones who drive those giant gas guzzling trucks...not as work trucks, but just to go get groceries or whatever...bitch the loudest. It's their own fault they pay $110 per fill every other day.🙄
https://www.reddit.com/r/alberta/s/ODuZTu3Lvi
Maybe there's a different explanation there - I'm no economist like you.
I'd love to see this same chart again in a few months in any case.
Yes they paid a carbon tax. They received compensation equal to or greater than what they spent.
1) High prices even when rebated have an impact on buyer behaviour
2) The rebate is fixed so the more you cut your usage the more of the rebate you bank.
3) Wasteful users and the wealthy pay more than they get back.
The tax or price on carbon incentivizes fossil fuel consumers and producers to find alternatives. The rebate for consumers mitigated the transitional pain. The Liberals failed to explain it and appropriately label the rebate cheques.
https://www.cbc.ca/news/canada/calgary/axe-the-tax-and-carbon-rebate-how-canada-households-affected-1.7046905
Knowing the oil industry and conservatives would weaponize it.
Liberals, like Democrats suck at marketing and cannot afford to suck at it.
Period.