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Environment

Green Shifting Doesn't Have to Make Your Head Spin

Posted by Greg Davis / September 22, 2008

the green shift is confusingSince Liberal leader Stephane Dion was apparently downplaying his party's Green Shift plan by not mentioning it when speaking recently in Toronto, and then avoiding it again when visiting Western farmers, I figured a highlighting of said plan is in order.

When asked about the centrality of the Green Shift to the Liberal platform, he was quoted as saying "You have said it was, but never me." That's a bit confusing, but perhaps an understandable statement given in the context of announcing big handouts to farmers (who are worried about being hit financially from the plan).

So what to think of the merits of the Green Shift plan?

In A Nutshell

The Liberals would introduce a $10 per tonne of carbon emissions tax at the wholesale level, increasing by $10 in each of their four years in power to $40 in the fourth year (by comparison the international consensus seems to be that $30 per tonne is necessary to be effective - in BC they started at $10, rising to $30 by 2010).

The heaviest fossil fuel consumers will likely pay the brunt of the tax- heavy industry and power plants. Gas pump prices would not affected since taxes there already exceed those in the plan.

All the tax revenue collected is promised to be offset by equal amounts of either tax cuts or new spending.

Sounds pretty simple right?

Obviously there is a plethora of questions that spin out of any attempt at explaining the idea. Luckily it's receiving a ton (no pun intended) of editorial attention so there is no shortage of thorough analysis, that doesn't have to make your head spin, if you look in the right places.

The Ottawa Citizen published two great articles over the weekend on the subject. The first explains the subject of pricing carbon broadly and how the Liberal plan stacks up in contrast to the options out there. The second summarizes why it is likely to be a tough sell to the public.

Toronto based environmental lawyer Diane Saxe wrote a straightforward piece outlining her reasons for supporting the Green Shift and debunking some associated myths.

It will be extremely interesting to see who comes out in support of the plan or against it. There are lots of criticisms to be made centering mostly around (a) the timing of such a tax (current economic woes); and (b) the complexity of tying it in to other spending (and not just a direct income tax cut). But in general it seems to me that experts in the field of policy and environmental law agree that if you are going to aim for reducing carbon, the plan makes sense. Whether or not carbon reduction should be a national priority is another question. However, if you say it is (and all parties do - including the Conservatives), then some sort of price on carbon is the only way to really make that happen.

Finally, if you want to hear about it straight from the leader himself: download the mp3 version of Stephane Dion's interview on TVO's The Agenda with Steve Paikin from last week.

Photo: Angie McKaig.

Discussion

20 Comments

Corina / September 22, 2008 at 12:12 pm
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I know the article isn't about pugs but... so cute.
john / September 22, 2008 at 12:15 pm
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It amazes me how Canadian's turned into a country full of greed. Are we saying we can't all pony up a couple bucks to save the earth? Is that what Mr. Harper thinks is a good idea? Ignoring the environment?

I live in this world, and my kids will live in this world, and I think something should be done. In my opinion, this is the first good thing Dion has done. I can't believe he has taken so much flac from Canadians. I guess that goes to show the Scare Tactic/Propaganda Techniques the Conservatives are using really turned most forward thinking Canadian's into environment hating drones.
Ratpick / September 22, 2008 at 12:47 pm
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John, Dion has taken this flak because he is a terrible salesman. He has not made a compelling case for his plan, instead permitting his opponents to plant the idea that Dion wants to tax us all to death.

Big lesson here to the Liberal Party (especially Gerard Kennedy): when you're going up against known bullies in a fight, don't pick a leader who always seems like he's being beaten up.

What we have here is a sensible plan, but nobody to sell it.
Rob / September 22, 2008 at 12:55 pm
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I have to disagree with you John on one thing you state. This is not a scare tactic used or a propaganda piece, don't be so melodramatic. What the Conservatives are doing is what any party would do in this situation - piling on the Liberals. Dion cannot/has not been able to explain the plan in less than 30 secs. In theory...or if you have a few minutes in Dion's case...this sounds like a good idea but is open to very (forgive the pun) Liberal interpretations of what should/shouldn't be taxed.

The reason why this issues isn't gaining more traction is because of Dion's inability to speak to English Canada and talk about his message. Secondly, because most people don't have more than 30 seconds to absorb a message, it would get lost on those who might benefit from it. Thirdly, let's call a spade a spade and say this is a tax grab. It's easy for the Conservatives to use this argument (whether it's right or wrong) in most of the country outside of urban centres where the effect will be felt greatly.

What I wish would happen is the plan to include another plan for rebates for consumers. This way instead of just charging extra under this plan people should have the ability to get assistance (in the form of a rebate) for everything that they do to become more environmentally friendly.
Neil / September 22, 2008 at 01:28 pm
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To build on Rob's comment, another key reason this plan isn't doing Dion any favours is that the environment is such a non-factor in this election... according to an Ipsos-Reid poll just released, the key issue for Canadian voters are the economy (26%), healthcare (19%), taxes (12%), and the environment (11%).

If you're going to try and sell a hockey stick to someone who doesn't play sports, you'd better be fully prepared to demonstrate what other benefits that stick might have; Dionhas been portrayed, accurately or not, and largely perceived as having all his eggs in the Green Shift basket, while failing to tell Canadians how he'd keep them employed and healthy.
Dave / September 22, 2008 at 01:29 pm
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@Rob: A good idea - it's imperative that while hitting people's wallets with this carbon tax (to encourage healthier habits, and price the market externalities), that the desireable alternatives are made more affordable...

The major flaw I see with this policy (and the entire economic agenda of the Green party) is that it is regressive taxation. This policy hurts the poor, working poor, and lower-middle class much harder than the rest. (Conservative really love this fact...)

In addition - if you are trying to discourage people from buying products that contribute to your tax revenue - your revenue starts to shrink dramatically. Where will the gov't find funding for programs if they have less tax to collect?
Dave / September 22, 2008 at 01:34 pm
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Rob,

Bullocks.

30 seconds? Dion has repeatedly summed up the Green Shift in this 5-second sound byte: "less tax on what you earn, more tax on what you burn."

If you heard M. Dion on The Agenda, The Current or The Hour last Thursday, he gave a simple explanation and of the plan and passionately made the case for it.

It is absolutely clear that this is a tax shift, not a tax grab. Those who call it a tax grab are, simply, lying.

It amazes and appalls me that Canadians appear ready to believe lying oil spots and pooping puffins, rather than demanding and listening to intelligent, reasoned debate.
john / September 22, 2008 at 01:45 pm
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I didn't realize that the environment fell off everyone's radar (only 11% serious?). For me it is a major point and I just can't vote for a government that turns their back on the environment (ABC).

Dave, you wrote, "This policy hurts the poor, working poor, and lower-middle class much harder than the rest. (Conservative really love this fact...)"
But part of the Liberal plan is to reduce lower/middle income tax by about 10%.
I'd say that basically negates that argument.
Dave / September 22, 2008 at 01:56 pm
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Doesn't change the fact that people with less income typically spend a greater portion of their money on consumption taxes than do wealthier people. The tax is regressive, no matter how you spin it. (And maybe, the poor and middle class deserved a 10% reduction anyways)

... ugh... I hate to say this, but the NDP's cap and trade seems to make more sense...
Neil / September 22, 2008 at 02:01 pm
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11% is actually pretty significant, especially when you consider that the question (asked to 1,013 average Canadians) was, 'What is the most important issue for you in this election, the one that you most want the political leaders and candidates to be talking about?' So that means that 1 in 10 people stated that environment tops their list.

Of course, 11% is also not going to win you an election, and that number shrinks even further when you consider it was only 7% in AB, 6% in Atlantic Canada, and barely even registered as a concern in SK and MB.
RBeezy / September 22, 2008 at 02:54 pm
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screw the details. the dirty little secret of mass communications is that people as a collective are stupid, or at least act that way.

here's my proposal: Dion needs to co-opt the little doggie in the photo as the official Green Shift mascot - Pooch can be the Liberal equivalent of Harper's sweater vest.

Some possible taglines:

"Harper thinks that if you can't see it, then the green problems will go away"

"See no evil? That's Harper's approach to the environment"

"Don't care about the environment? Then cover your eyes and kiss your grass goodbye" (my favourite)
Rob / September 22, 2008 at 03:48 pm
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Dave, what i meant by explaining it in 30 seconds is a typical news clip on CBC/CTV/City...et al. The typical person for whom this plan will affect probably do not watch these shows you mentioned. Put Dion on say Question Period or Focus Ontario, hell even Mike Duffy Live and see how he does. He has a lot of trouble explaining his stance so much so that he needs Bob Rae and Ignatieff to help him out. If he didn't have the speech difficulty maybe things would be different. Until I see him able to clearly explain the plan on the main news networks during the 6 or 11 p.m. news, my opinion has not changed.
Dave / September 22, 2008 at 04:15 pm
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@Rob: Damnit, I was about to write that you're responding to the wrong guy, then I realized another Dave wrote something right after me...

@Dave: We gotta work out a name sharing agreement.
gerard kennedy is a putz / September 22, 2008 at 04:27 pm
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I support the greenshift but the problems aren't limited to people being selfish and nearsighted.

Rather than being truly revenue neutral, the Liberals have worked in significant social spending <i>in addition to very significant income tax cuts</i>

I support the social spending, and the idea of a carbon tax, ao I support the green shift. But by combining these two different initiatives and calling it "revenue neutral", they're misleading the public and they shouldn't be playing these games with such an important initiative. They're reaching. If they didn't incorporate the spending, they could be highlighting double-digit cuts to income taxes without second-guessing themselves or being portrayed as tax and spend socialists.

If you want to increase social spending, be straight with people and tell us that. Don't try to piggyback it onto the environmental agenda.

And, to back up ratpick, they've picked the worst leader in the world to do the heavy lifting.
brightlined / September 22, 2008 at 04:46 pm
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The problem with the Green Shift is that it's not immediately compelling. It's not a campaign-winner. No matter how good an idea it might be, it feels more like an aside. It's like being asked to choose a new car based on it having satellite radio, where offering a hybrid engine would make the choice more compelling. The Liberals should be hitting Harper on unpopular issues (Afghanistan, etc). (I wonder if calling this election could be one of those issues.) The Green Shift would be something to put forward and implement the next time the Liberals have a majority (or can get the votes).

But, yeah, Dion is not the greatest spokesperson. His appearance on The Hour the other night struck me oddly. Strombo didn't necessarily ask great questions, but when Dion tried to dodge certain ones, it was ugly. If I were undecided, it definitely wouldn't have won me over - and might even have turned me away.
rek / September 22, 2008 at 10:25 pm
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The environment is #1 with young voters:
http://network.nationalpost.com/np/blogs/posted/archive/2008/09/17/new-poll-of-young-voters.aspx

"? The environment (27%) and education (25%) are the most important issues in this election for young voters. The economy (17%) and health (15%) make up a second tier, while no other issue is higher than 4%."

The Liberals and NDP and Greens have done a terrible job getting their messages out there, but can you really blame them when the Cons could have been (and likely were) working on their campaign materials for weeks before the election was officially called? Every 5th commercial seems to be the Cons trying to scare people...
rek / September 22, 2008 at 10:34 pm
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The Cons have spent the last couple of months trying to scare everyone about the economy when there was no real sign that it was actually going to get bad in Canada. Flaherty kept dumping on Ontario, now half their commercials (the non-sanctimonious ones) are about the unsure future and instable economics south of the border. They're Republicans. The scary (social) rightwing agenda lurks just off stage, waiting for a majority so they can strip gays of equal marriage status, probably sell off health care (maybe to the Europeans?), slash and burn welfare, and maybe even repeal abortion.
bumdarts / September 23, 2008 at 07:30 am
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rek: Uhh... yeah... well, all you need to do is open your eyes to what's going on in the rest of the world to see that yes, infact, the economy is in trouble. If you think Canada can just sit back in happy-land while the rest of the global economy falls into the toilet you've got another thing coming.

And you know what? The last thing people what in an economic crisis is new 'wacky' plans. They just want stability.

The green shift is a bit of a mess, it confuses people, and Dion is one of the worst Liberal leaders in a while. They'll get knocked pretty hard in this election, but it will hopefully wake them up and make them realize that just because they've been in control of Canada 70% of the time, it doesn't mean they don't still have to work hard for it. Conservatives just plain want it more and are far more organized and ready to lead the country right now. The left parties just feel a little lost right now.
Dave / September 23, 2008 at 10:02 am
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@Rek: While I agree that the environment is an important issue, the fact that it's a #1 concern with young voters is meaningless. I mean, young voters are a relatively small group compared with the more politically active elderly group. So pandering to them makes more sense if you want to win control.

Libs screwed this election up unfortunately. Kennedy deserves a swift kick in the nuts for crowning Dion.
rek / September 23, 2008 at 12:23 pm
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bumdarts - Don't call it wacky because you don't understand it. Carbon tax isn't a new and untested thing, we even have it in parts of Canada as the article above says. I agree the Liberals are doing a bad job of getting out there just as they did a bad job making Dion their leader, but that has nothing to do with whether their plan will work.

As for the world economy, I don't recall any other country having the same problems the US is facing. Even the food pricing/shortage issue seems to be resolving. Gas prices are up and a few thousand lost their jobs making cars, but that's not a new phenomenon here.

I'll be voting NDP, but I hope for another minority government (Cons or Libs, doesn't matter).

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