National Carbon Price Could Curb Emissions Across Canada's Provinces
A national climate policy should consider both producers and consumers to reduce greenhouse gas emissions effectively. Emissions from production and consumption are interconnected, with trade flows affecting emissions patterns across Canadian provinces. Implementing a national carbon price can help align emissions pricing and incentivize consumers to reduce demand for carbon-intensive goods. However, policies must also support trade-exposed producers to prevent negative impacts on competition and potential carbon leakage. Balancing these factors is crucial for achieving emission reduction goals while maintaining economic competitiveness.