The Carbon Tax Question: Clarifying Canada’s Most Consequential Policy Debate

A timely and insightful exploration of the implementation and impact of British Columbia’s carbon tax, delving into the political and economic considerations behind the tax, and addressing misconceptions.

Carbon taxation has become a political, social and economic hot potato in Canada (and beyond) and a major election issue. What is less known is that British Columbia established its own revenue-neutral carbon taxation policy in 2008. The compelling story of how and why has not yet been told. This timely book, written from a Canadian perspective and for a lay audience by climate policy expert Dr. Thomas F. Pedersen, highlights the key players and experts involved in the evolution and implementation of British Columbia’s carbon tax policy, as well as how the BC model compares to other carbon-taxation attempts around the world, including a remarkably convoluted debacle in Australia. Pedersen argues that, despite a common perception of carbon taxes as a horrendous imposition on the Canadian public and business community, BC’s carbon tax policy is in fact a template for the world and a gold standard for public policy to effectively counter climate change.

Encompassing politics, climate action, economics, science and political history, The Carbon Tax Question is a must-read for policymakers, economists and environmentalists—and all citizens interested in socially-just, equitable solutions to address climate change.

“If you need an injection of hope that governments really can do the right thing on climate change, read this book. A thorough, insightful and engaging account of the story behind the ‘world’s best climate policy’—British Columbia’s pioneering carbon tax.”

“This great book is exactly what I expected from Tom Pedersen: a thoughtful, well-told story about the toughest challenge of our time. How do we stop the dangerous warming of our planet when cynical politicians keep stepping in the way of the solutions? Buy this important book and share it with your friends and family.”

“Tom Pedersen was both a witness to, and a participant in, the implementation of British Columbia’s groundbreaking carbon pricing policies in the late 2000s and early 2010s. He has written a fascinating and highly readable story about how British Columbia did this, full of colourful characters and dithering politicians, and contrasted this against the less-successful Australian experience. Along the way, Tom reflects on how to successfully introduce carbon pricing, which is so important to addressing how we, collectively, deal with the climate emergency we are facing.”

“The Carbon Tax is a critical tool in the climate solutions toolbox. Much maligned and misunderstood, Tom Pedersen takes you behind the scenes and walks you through the history, science, and economics necessary to understand the power behind this mechanism for addressing the climate crisis.”

“ ‘There is a take-home message here,’ Thomas Pedersen writes. ‘Carbon taxes need not be poisonous.’ He’s right. I would add that what appears to be impossible—an economy-wide, worldwide price on carbon dioxide—will become inevitable without ever passing through probable.”