The Ground Rules for Effective Obas

The panel, chaired by Andrew Leach of the University of Alberta, recommended in its Climate Leadership Report (hereafter referred to as the Leach report) that: “ … the Government of Alberta broaden and improve its existing carbon pricing regime, and complement carbon pricing with additional policies to reduce the emissions intensity of our electricity supply and our oil and gas production, to prom [...] As such, the combination of emissions intensity and the share of production that is exported are of paramount concern in determining the sectors in which a carbon price will have the most significant negative impacts on competitiveness. [...] Output subsidies are meant to cushion the effect of pricing carbon on those sectors towards the right and the top of the above graph. [...] If we were to perform the same calculation using the 2017 price, we would likely find an effective direct carbon tax in the crude oil extraction sector that is nearly double that indicated in the figure.10 The utilities sector is not pictured in Figure 4. If it were, it would be at the extreme left (very low exports as a proportion of gross production) but above the end of the y-axis (a 33-per-cen [...] As the end-use demanders of goods and services, households pay the majority of the costs of a carbon price.