(image credit - CFJC Today)

By Michael Reeve

CARBON PRICE INCREASE

As Kamloops commuters lament carbon tax bump, TRU economist praises ‘best part’ of federal climate plan

Apr 1, 2024 | 5:30 PM

KAMLOOPS — On Monday (April 1), the federal carbon tax increased by $15 per tonne to $80 dollars per tonne overall. While British Columbia has its own carbon levy, the April 1 increase will see the price of fuel in our province rise at the pumps. The increase is also expected to have an impact on various consumer goods, as the increase in carbon pricing paid by companies or transporters is passed down to the consumers.

Just over three cents per litre. That’s how much British Columbians will see the price of fuel jump following the April 1 federal carbon tax increase.

“B.C. still has their own carbon tax, but if they don’t raise it in lock-step with the federal one — if it falls below the federal one — then the federal government will step in and implement their own. So, B.C. trying to keep autonomy over their own carbon tax — a very successful B.C. policy — they then want to increase it with the federal one,” said TRU Associate Professor of Economics Joel Wood.

The trickle down economics of the price increase across industry will be a one-time jump, according to Wood, and not ongoing inflationary pressures.

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“It’s just a one-time increase whereas inflation is the increase in prices consistently over time. Ultimately, there is going to be a very small impact on inflation. It’s going to be felt right away and then it no longer affects the inflation rate going forward,” Wood told CFJC News.

While the government offers rebates for the climate action, for everyday consumers, they say the continued increases are further stretching their budgets and making it harder to get ahead.

“I live in a little bit more in a rural town, so to commute, for sure, every week. I have coworkers who travel every day and [the increase] will suck for them, too,” Sydney told CFJC Today while fueling up at a Kamloops gas station.

“More budgeting than before — it’s just going to be tough on young families. Everybody — it’s affecting everybody,” added Tracy.

Despite public outcry and political rhetoric around ‘axe the tax’, economists from across Canada, including Wood, penned an open letter defending carbon pricing in Canada — although he was quick to state they don’t support rest of the federal climate plan.

“Carbon pricing is really the best part of the climate plan thus far in Canada going forward. It lets people make their own decisions about whether to reduce emissions, lets them use their own information and it reduces emissions at the lowest cost,” said Wood.

The carbon price is scheduled to be increased every year until 2030.