Alberta's Carbon Policy: A Work in Progress

Abstract

Alberta’s current carbon abatement policies have not achieved the goals set out by the provincial government’s climate change strategy. With the legislation expiring next year, a new policy must be introduced to help improve Alberta’s environmental stewardship. What has recently begun to be talked about is increasing the current 15$ penalty levy to 40$ and increasing emissions reductions from 12% to 40%. This is a move in the right direction but if it will be enough to help the government achieve their goals and what the impact on the industry will be is still uncertain. By closer examining the current Alberta levy, looking at other carbon policies from around the world and assessing any new proposal through the tax criteria’s of efficiency, administration costs and comprehensibility and compliance costs, one can better evaluate the potential impact of an increase to the current Alberta carbon reduction strategy.