Ontario Carbon Pricing Briefing Notes

With renewed interest in climate policy – driven by the Paris climate meetings in December and increased focus from provincial governments on climate action - Sustainable Prosperity has prepared two briefing notes summarizing the state of knowledge and practice on carbon pricing.

These notes are designed to provide a foundational level of knowledge on the basic rationale and design principles of effective and efficient carbon pricing policy. SP welcomes the opportunity to engage and discuss the ideas and concepts included in these notes.

Share this post

About the Project

The goal of this project is to shed light on the relationship between economic activity and the environment by exploring the linkages between changes in our natural capital and our measures of productivity generally, and through the construction of an environmentally adjusted measure of productivity specifically.

While it is now commonly accepted that economic activity and the state of our environment are linked, many economic measures still fail to incorporate the environment – both the things we draw from it and the pollution we release into it. By developing and calculating measures of productivity that include natural capital, Canada may be able to better understand these linkages. This, in turn, may lead to the identification of strategies that can help Canada become more efficient and innovative in the use and protection of natural capital, and thus more productive and more prosperous.

Using the forestry sector as a case study, this project aims to construct an environmentally adjusted measure of multifactor productivity. In doing so, we aim to add another layer of understanding to the environmental and economic performance of this sector. The proposed measure will have relevance to the Canadian economy as a whole.