With less than eight years left to meet emission targets established under Alberta's carbon policies, it is a good time to step back and evaluate whether these polices are on track to meet the targets. In order to assess the effectiveness of the policies, this report conducts a differences-in-differences analysis to compare how emissions have changed in comparison to Saskatchewan. It is discovered, despite the implementation of the levy in 2007, emission behavior between the two provinces is quite similar. The levy has not been able to significantly curb behavior and achieve the reductions required under Alberta's greenhouse gas policies. In order to achieve a significant shift in behavior, five recommendations are outlined to change the current carbon policies, which include:
1. An increase in the price of carbon & coverage of the levy
2. Make small emitters accountable under the carbon policy
3. Not include offset credits as a reduction in emissions
4. Make Carbon Capture & Storage initiatives more economically viable for companies to undertake or alternatively look for other carbon reducing technologies.
5. Develop an independent body which evaluates the performance of polices annually