There has been an ongoing discussion that regulation, despite its higher economic costs, is better than carbon pricing because the public will not accept the high carbon price that is necessary to curb GHG emissions effectively. The true costs of regulation are hard for most people to appreciate. Dr. Chris Ragan, the chair of Canada’s Ecofiscal Commission says this about carbon pricing vs regulation, “Whenever people say, “We can’t have a carbon price that high!” try asking them, “Why can’t we have income taxes that low?”: Dr. Ragan is referring to the plan that some jurisdictions adopt: lower taxes to offset the costs of carbon pricing, a policy that can really help those with lower incomes. Rising carbon prices can still be seen as a tax grab though. Most people don’t make a direct connection between lower tax rates and higher carbon prices. So Citizens’ Climate lobby advocates for direct dividends or rebates to help families transition to a low fuel economy. Direct dividends will increase support for carbon pricing. LASER TALK: Reframing the concern of the high carbon price
