Time for Canada to add federal floor under carbon prices

Tracy Snoddon is author of the C.D. Howe Institute study Carbon Copies: The Prospects For An Economy-Wide Carbon Price In Canada.With our major trading partners, the United States and China, having recently ratified the Paris climate agreement, there is mounting pressure on Canada to come up with a plan to meet its emissions reduction targets. It’s time for Ottawa to take action and put in place a floor price on carbon nationwide.

If the goal is to reduce Canada’s carbon emissions in a way that causes the least amount of economic damage, a uniform price on carbon that applies across the entire country is the best option. A national carbon price has many advantages: It eliminates unproductive jockeying between provinces to attract business and doesn’t push firms across borders solely because of carbon price differentials.To date, the provinces have done all the heavy lifting …