| This article summarizes and provides additional perspective on a study that contributes to the growing body of analyses of the costs of limiting greenhouse gas emissions. The study estimates the economic costs to Canada of six planning scenarios. Four of these scenarios involve the use of tradable emission permits and two involved a carbon tax. In each case, the mechanism's target is to stabilize greenhouse gas emissions at some percentage of 1990 levels (100% or 90%) by either 2010 or 2015. Policies that impose greater constraints on carbon dioxide emissions lead to higher economic costs in terms of foregone output. These costs, however, vary for the same objective, depending on the mechanism chosen and the economic assumptions made. In one typical... |
