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Davis Econ's Bushnell Weighs in on Alberta's Climate Policy in Wired Magazine

Alberta, home of the oil sands, adopts a carbon tax.
Davis Econ's Bushnell Weighs in on Alberta's Climate Policy in Wired Magazine

Canadian Oil Sands

Economics Professor James Bushnell was featured in last week's Wired Magazine discussing Alberta's dramatic change in direction in its climate policy.  The Canadian province, a major source of abundant but carbon intensive oil sands production, has until recently lagged behind other provinces in combating greenhouse gas emissions.  However, in November of 2015, Alberta announced plans to impose a tax on carbon emissions starting at $15 a ton. Bushnell, who has advised the California Air Resources Board on California's cap-and-trade program, notes that either a cap or a tax is a big step forward.  While taxes are often thought of as a simpler mechanism, a cap and trade system may be more politically durable, since many of the regulated firms ``have a vested interest in the value of the permits," says Bushnell.