British Columbia’s (BC) introduction of a revenue-neutral carbon tax shift in 2008 was controversial. This analysis compares changes in fuel consumption, greenhouse gas emissions and GDP between BC and the rest of Canada. It finds that in the four years since the tax was introduced, BC’s per capita consumption of fuels subject to the tax has declined by 19 per cent compared to the rest of Canada. At the same time, its economy has kept pace with the rest of Canada’s. BC’s experience mirrors the European experience with carbon tax shifting, and should inform the national debate on climate change policy.
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