Canadian policymakers have the policy tools needed to ameliorate the regional economic harm that taxing GHG emissions can cause. A price on GHG emissions will affect Canadian provinces differently, possibly undermining support for a policy that incurs regional transfers of income. The authors...

There is a growing consensus that if serious action is to be taken to reduce greenhouse gas emissions in Canada, a price must be applied to emissions. But how would Canada’s climate policy coexist with the rest of the world? And how would domestic industry be affected?