Here is a summary of their letter:
What Needs to be Done
- Canada needs to act on climate change now.
- Any substantive action will involve economic costs.
- These economic impacts cannot be an excuse for inaction.
- Pricing carbon is the best approach from an economic perspective.
- Pricing allows each business and family to choose the response that is best and most efficient for them.
- Pricing induces innovation.
- Carbon is almost certainly under-priced right now.
- Regulation tends to be the most expensive way to meet a given climate change goal.
- A carbon tax has the advantage of providing certainty in the price of carbon.
- A cap and trade system provides certainty on the quantity of carbon emitted, but not on the price of carbon and can be a highly complex policy to implement.
- Policies that impose costs on producers (big or small) affect consumers.
- Price mechanisms can be regressive and our policy should address this.
- A pricing mechanism can allow other taxes to be reduced and provide an opportunity to improve the tax system.