Are the poor going to be hurt by a Carbon Tax?

This article was first published in the Skaha Matters Newsletter.

I read a letter to the editor the other day which made the argument that poor people use propane for heating and that a carbon tax will raise the price of propane, which is a big part of a poor household’s winter budget, therefore we should not have a carbon tax because it will negatively impact poor people.

Global warming is going to impact poor households in Canada and across the world. The effect on human lives will be so bad that a $400/year increase per household due to carbon taxes will seem like a drop in the bucket. There are many ways to look at how we arrived at our current dangerous greenhouse condition. I prefer to view it as an engineering challenge. Philosophically, however, it is a story of the “haves” taking from the “have-nots”.

Looking at our history, the oil economy has made North America rich. It has provided abundant energy, which has driven innovation, business growth, low shipping costs (Amazon!), a high standard of living, and a life expectancy of 80 years. The lifestyle of an average person in Canada or the US generates 15 metric tons of carbon dioxide a year, per person. “Business as usual”, i.e. no carbon tax, provides us with food, comfort and security.

While poverty in Canada cannot compare to poverty in third world nations, even here the poor will be most impacted. Intense weather (floods, storms, fires) will wipe out their only home, which may be covered inadequately by insurance, forcing them to buy or rent on today’s more expensive market, likely to add a longer commute to already stressed lives. More severe and less predictable droughts will stress Canadian farmers. Wealthy people can raise their home to survive flooding, move to elevated sites, and move to cities less impacted by climate change.

The most effective program to drive innovation and lifestyle change and slow carbon emissions is a carbon tax. Our industries, competing in open markets, will make products lighter, ship parts across the ocean fewer times, and develop new (and surprising) technology. If Canada acts now, our carbon reduction technology could boost Canada’s GDP -- imagine Canadian engineers hired across the globe to adapt energy facilities and Canadian patents (built in China or India) used in every car, power plant and factory. Canada has long acted as a neutral mediator on the world stage. Imagine Canadian auditing firms that research and monitor carbon emission of every country, preventing “greenwashing” and holding the world to its goals.

For decades, lower income families in Canada have lived in older and substandard housing. These houses need new insulation, new roofs, new windows. Rather than canceling the carbon tax, let’s cut carbon twice, by moving forward with a carbon tax and properly insulating the homes of low income Canadians. We can afford it, and frankly we can’t afford not to. This article was first published in Skaha Matters.


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