Carbon Taxes Slash Emissions, but Curb Economic Growth in New Brunswick
In New Brunswick, Canada, researchers looked into how different carbon policies affect the economy and carbon emissions. They used a special computer model to study two scenarios: one with a certain carbon tax on all emitters, and the other with a mix of smaller and bigger emitters taxed differently. Results showed that applying a gradually increasing carbon tax to all emitters would lower the economy a bit and cut emissions by over 32%. But when the mixed tax system was used, the economy didn't drop as much (only about 0.24-0.26% decrease) and emissions decreased by 13%. Overall, the cost of these changes was between 50 per ton of emissions, which is usually less than what's calculated as the global social cost of carbon in other studies.