Ottawa's federally-imposed carbon tax may have little impact on the demand for carbon-heavy products, wrote Doug Auld, professor at the University of Guelph, in an opinion column. Applying the tax to vehicle fuels, for example, may have little impact given the low price-elasticity of demand for these products. Additionally, the upfront cost and investment required by corporates to produce lower-carbon products may prove more economically harmful than paying any carbon emissions tax.
Canada's federally-imposed carbon tax may have little impact on the demand for carbon-heavy products, wrote Doug Auld, professor at the University of Guelph, in an opinion column. Applying the tax to vehicle fuels, for example, may have little impact given the low price-elasticity of demand for these products. Additionally, the upfront cost and investment required by corporates to produce lower-carbon products may prove more economically harmful than paying any carbon emissions tax.