Ah great, no engagement, no elaboration, just move right on to the next in your list of 20 questions.
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Originally Posted by lozen
Let me give you an example of why O'Tooles plan can work
You have two folks One is named Luke and he is an associate professor at UBC and earns $49,000 a year and lives in his parents garden suite pays no utilities just rent and rides his bike to and from campus and really pays no carbon tax but gets a carbon tax rebate under Justin's Plan WHY?
Firstly, lol at a UBC associate professor making 49k, you are clearly quite out of touch. But the way is clear: we want to encourage people to live low carbon intensive lifestyles, and discourage people from using carbon intensive ones. So if someone is using a very low carbon lifestyle with shared living, biking, etc, this is something we want to encourage! So if that person is a net winner, and someone who lives in a big house away from family with a long commute then they might be a net loser, this encourages lower carbon lifestyles. Do you see the crucial mechanism here? It is carrots AND sticks.
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Than you have Nifty who owns a grain farm and does really well earns $200,000 a year but uses coal fired grain dryers as coal is cheap. He pays carbon tax on that coal and the diesel and gas he uses on the farm and natural gas to heat his home. Under O'Tooles plan He gets to put that carbon tax in a green savings account were he can later buy a Bio Mass grain dryer under Justin's he gets nothing
https://www.agweek.com/business/3788...biomass-drying
Nifty has a an incentive to switch under either plan, but it works in different ways. Under the liberal plan, "Nifty" (where do you come up with these names?) has an incentive to switch because he will save a lot of carbon tax by shifting. Under the conservative plan, every dollar he spends in the carbon tax he gets back right back as the personal rebates depend on what you spend, and if he ever reduces his carbon usage he stops getting the money back. So he might not even want to bother! The only incentive structure is that the big government conservatives are making choices of what from a large category he chooses to spend the money on, maybe it is Bio Mass dryer out of the good of his heart, maybe that isn't worth the effort and it is something else.
The core problem with "return the exact amount of money you spend back to the individuals" is that it really reduces the incentive. That the money can only be spent on specific categories does create some incentive, it isn't taken all the way to zero, it is just lessened. Again, more carbon intensive industries will likely be net losers but that is part of the bargain, it now lets us build in the true costs of that carbon into the economic pricing mechanisms.