And it was supposed to remain a major part of Prime Minister Justin Trudeau’s legacy, both at home and abroad – part of an urgent global push to fight climate change.
The government has struggled to respond to the Conservatives’ attacks, despite the carbon price enjoying widespread support among economists.. The federal government’s Canada Carbon Rebate is designed to compensate voters for the financial burden. According to the parliamentary budget officer, eight out of 10 families receive more in rebates than they pay in carbon taxes.
“Our results indicate that, absent political messaging, rebates increase public support for carbon taxes in both countries by building support among lower income groups,” the 2022 paper said. Rhodes said some of her studies show that the more information people are provided about complex climate policies, the more confused they get.
Mildenberger and Rhodes both said they recognize that the carbon tax is, theoretically speaking, the best choice for fighting climate change. Mildenberger is a proponent of U.S. President Joe Biden’s approach, which relies heavily on government investments and subsidies in the green economy. In a statement, Environment Minister Steven Guilbeault defended the carbon tax as the most “cost-effective and efficient” way to reduce emissions. He cited departmental work that suggests replacing the consumer and industrial carbon prices with subsidies would cost taxpayers billions more.