Reducing Greenhouse Gas Emissions in Transport: All in One Basket?
DOI:
https://doi.org/10.11575/sppp.v11i0.43288Abstract
Analysis after analysis has shown consistently that if policy-makers aiming to meet climate goals are looking for the most-efficient, least-distortionary way to target emissions growth, there is simply nothing better than abandoning all emissions regulations except for one: A straight, revenue-neutral carbon tax. Nothing works through more channels, at a lower cost.
Alas, policy-makers are not always looking for the most-efficient, least-distortionary way to target emissions growth. That’s because many of those same analyses show that in order to reach emissions targets, the price on carbon would have to be so punitive as to be politically unbearable, raising the price of gasoline, for example, by about a dollar a litre. That leads politicians to mix in other policies that are less visible to the consumer but also less efficient, less effective and more expensive in abating carbon dioxide.
The recently negotiated Pan-Canadian Framework on Clean Growth and Climate Change intends to follow that model, relying on a blend of different policies to help reach Canada’s Paris climate targets. But while the government seems therefore determined to rule out the possibility of a nothing-but-a-carbon-tax plan, it is possible, through the careful application of just the right sort of emission-reduction approaches, to reduce the costs of abatement in a key policy target — namely, road transportation — to a level that at least approaches the lower cost of a carbon tax.
The government will likely consider several options in trying to reduce emissions from road transportation. Typical tools include requiring manufacturers to meet standards for new vehicles that mandate fuel economy and greenhouse gas emissions; gasoline taxes; taxes on emissions-intensive vehicles; subsidies for low-emission or zero-emission vehicles; and subsidies for public transit. Indications are that a low-carbon fuel standard (LCFS) will play a significant role in the Pan-Canadian Framework.
Applied carefully, an LCFS combined with a mandate for automakers to sell more electric vehicles would be an appropriate policy for Canada to achieve meaningful emissions reductions at a tolerable cost, given other policy measures already committed to. Subsidies for electric vehicles, however, should be avoided as they turn out to be one of the least cost-effective policies to reduce emissions.
Requiring car makers to sell more electric vehicles will lead to higher prices for standard internal-combustion vehicles as automakers are forced to spread the cost of the electric-vehicle mandate across their non-electric models. That in turn will lead to cheaper electric cars and pricier non-electric cars, making it likelier that consumers will gravitate in increasing numbers to electric cars, helping reduce emissions. Meanwhile, as the LFCS standard is raised, drivers of internal-combustion vehicles will face an even higher cost of filling up, again prompting more drivers to consider switching to electric vehicles. The combined effect — achievable at close to the cost of a carbon tax — will make it more expensive to drive a gasoline-powered car, similar to the effect of a carbon tax on drivers, but less visible and so less politically risky.
Downloads
Published
Issue
Section
License
The following is the copyright statement of SPPP.
Copyright © <Author name> <year>. This is an open-access paper distributed under the terms of the Creative Commons license CC BY-NC 4.0, which allows non-commercial sharing and redistribution so long as the original author and publisher are credited.
Publication Copyright and Licensing
The following guidelines and information, provided in six sections, are intended for authors (the “Author”) who are invited to write a paper (the “Work”) for The School of Public Policy Publications (the “Publisher”). The rights and responsibilities conveyed in the SPP Author Agreement will only apply once your paper is accepted for publication. At that point in the publication process, you will be asked to download the form and return a signed copy via e-mail to spppublications@ucalgary.ca. Please review the below information to ensure agreement with SPPP policies.
Section 1: Author’s Grant of Rights
In consideration of the Publisher’s agreeing to publish the Work in The School of Public Policy Publications, the Author hereby grants to the Publisher the following:
1.1 The irrevocable, royalty-free right to publish, reproduce, publicly display, publicly perform and distribute the Work in perpetuity throughout the world in all means of expression by any method or media now known or hereafter developed, including electronic format;
1.2 The irrevocable, royalty-free right to use the Author’s name and likeness in association with the Work in published form and in advertising and promotional materials related to the Work; and
1.3 The irrevocable, royalty-free right to license others to do any or all of the above.
Section 2: Prior Publication & Publication by Others
2.1 The Author agrees not to publish the Work, or authorize any third party to publish the Work, either in print or electronically, prior to publication of the Work by the Publisher.
2.2 The Author agrees not to publish the Work in any publication outlet which is substantially similar to The School of Public Policy Publications for a period of six (6) months after publication of the Work in The School of Public Policy Publications. Substantially similar is defined as a non-subscription, open-access publication outlet with a similar mandate/vision and intended audience.
2.3 Should the Author publish or distribute the Work elsewhere at any time or in any alternate format, the Author agrees to contact The School of Public Policy Publications to inform them of the subsequent publication.
2.4 Should the Author publish or distribute the Work elsewhere at any time or in any alternate format, the Author agrees to make reasonable efforts to ensure that any such additional publication cites the publication in The School of Public Policy Publications by author, title, and publisher, through a tagline, author bibliography, or similar means. A sample acknowledgement would be:
“Reprinted with permission from the author. Originally published in the The School of Public Policy Publications, http://www.policyschool.ca/publications/.”
Section 3: Editing and Formatting
The Author authorizes the Publisher to edit the Work and to make such modifications as are technically necessary or desirable to exercise the rights in Section 1 in differing media and formats. The Publisher will make no material modification to the content of the Work without the Author’s consent.
Section 4: Author’s Ownership of Copyright and Reservation of Rights
4.1 Nothing in this agreement constitutes a transfer of the copyright by the Author, and the copyright in the Work is subject to the rights granted by this agreement.
4.2 The Author retains the following rights, including but not limited to, the right:
4.2.1 To reproduce and distribute the Work, and to authorize others to reproduce and distribute the Work, in any format;
4.2.2 To post a version of the Work in an institutional repository or the Author’s personal or departmental web page so long as The School of Public Policy Publications is cited as the source of first publication of the Work (see sample acknowledgement above).
4.2.3 To include the Work, in whole or in part, in another work, subject to Section 2 above and provided that The School of Public Policy Publications is cited as the source of first publication of the Work (see sample acknowledgement above).
4.3 The Editors and Editorial Board of The School of Public Policy Publications requires authors to publish the Work under a Creative Commons Attribution-NonCommercial 4.0 International licence (CC BY-NC 4.0). This license allows others to distribute, remix, tweak, and build upon the Work for noncommercial purposes, and ensures the Author is credited for the original creation. This onward licensing is subject to section 2.4 of this agreement, which further ensures that the original publisher is credited.
Section 5: Author’s Warranties and Undertakings
The Author warrants that:
5.1 The Author is the sole author of the Work, or if a joint author, the Author has identified within the Work the other authors, and holds the copyright, either solely or jointly, and has the power to convey the rights granted in this agreement.
5.2 The Work has not previously been published, in whole or in part, except as follows:
5.3 Any textual, graphic or multimedia material included in the Work that is the property or work of another is either explicitly identified by source and cited in the Work or is otherwise identified as follows:
5.4 To the best of the Author’s knowledge, the Work does not contain matter that is obscene, libelous, or defamatory; it does not violate another’s civil right, right of privacy, right of publicity, or other legal right; and it is otherwise not unlawful.
5.5 To the best of the Author’s knowledge, the Work does not infringe the copyright or other intellectual property or literary rights of another.
5.6 The Author will indemnify and hold Publisher harmless against loss, damages, expenses, awards, and judgments arising from breach of any such warranties.
Section 6: The Reuse of Third-Party Works
The Publisher requires that the Author determine, prior to publication, whether it is necessary to obtain permissions from any third party who holds rights with respect to any photographs, illustrations, drawings, text, or any other material (“third-party work”) to be published with or in connection with your Work. Copyright permission will not be necessary if the use is determined to be fair dealing, if the work is in the public domain, or if the rights-holder has granted a Creative Commons or other licence. If either the Author or Publisher determines for any reason that permission is required to include any thirdparty work, the Author will obtain written permission from the rightsholder.
