In the recent past, there is a growing accord, on whether Canada should take a serious action in reducing greenhouse gas emissions. However, there are challenges related to the political appropriateness of carbon pricing. The main problem is that should Canada implement a carbon price, its factories might be forced to relocate to other countries to evade the rule. Even if, other countries are supportive to Canada to price carbon, the paraphernalia will be bumpy across all its sectors. In addition, politicization efforts by comparatively more-affected divisions might intimidate the political feasibility of the policy.
Situation Analysis
The current situation of Canada’s climate change is getting worse. Despite the deteriorating situation, the government has been reluctant in implementing a carbon pricing policy. Canada as certainly not done implemented any climate change as required in the global level. Several USA and Canadian authorities have followed the European Union and agreed to set up price on carbon emissions but have been unenthusiastic in its implementation. This has raised the view of a disjointed collaged of carbon-pricing policies. Canada fears that price carbon policy without cooperation with other industrialized countries will just hurt the effectiveness of some its industries. They also worry that it will as well cause jobs and economic productivity will be forced to move abroad. To some extent this is true; industries that release large amounts of greenhouse gas will have to other countries where emissions are neither regulated nor priced.
Economic and Risk Analysis
One of the risk that Canada faces due to its greenhouse gas emissions is an intensely fall as a result of tough carbon pricing. Canada needs to know that dealing with global climate change does not mean reducing gas emissions only, but sphere emissions. The releases entrenched in goods manufactured by Canada’s transaction associates for eating in Canada also present another risk. These goods should be deliberated when evaluating the total carbon track of Canadian consumption. Goods that are exported from Canada, and consumed elsewhere also expose people to adverse effects contamination. To reduce this risk, the goods manufactured in Canada for export, should be produced with lower greenhouse gas emissions than are foreign-produced products. This is because the mounting back manufacture is the only way out for Canada to reduce their overall releases of greenhouse gas.
Option Analysis
Despite the challenges that face Canada, it still has other alternatives that can be helpful. First, Canada needs to introduce a carbon price. This policy might affect some of the industry that release large amounts of greenhouse gas, but it will also reduce the net effect caused by this release. However, this might be a hard thing for the country because some of the Canadian industries might have to be shifted elsewhere. Secondly, the country needs to understand that the up surging emissions have been as a result of carbon leakage due to Canada’s failure to act. Instead of Canada working with the United States, they should concentrate more on developing its country. The long time known Canada’s competitiveness will, therefore, be of no good if the country does not harmonize its carbon policy with other small developing countries. This is because the developing countries trade mainly with non-carbon-intensive goods. In addition, the degree of trade in several developing countries is comparatively small. Canada needs to implement a policy that will address this growing issue. This is because the policy as tools such as the allocation of free, border tax adjustments and non-resalable permits that could be helpful in the alleviation of the loss of competitiveness. The Canada’s competitiveness from the independent application of a strong carbon-pricing policy can also be used to ease disapproval to the acting of effective climate change policy. However, this should be done carefully as such engagements could have detrimental effects on Canada’s broader economy.
Assessment of the Proposal
This paper has extensively explored the current situation of Canada’s increased greenhouse emission. The paper has also showed how the government has been reluctant in implementing a carbon pricing policy. However, this article has not stipulated Canada can come up with a policy that will ensure that there is reduced release of greenhouse gas. The article has also not indicated how the policy can be amended to ensure manufacturing companies do not shift to other countries.
Personal Recommendations
In my own opinion, this article should have provided some of the policies that can be implanted to address the carbon prize situation in Canada. The article argues that they are need for Canada to carbon prize, but it does not include the affects the industries will be faced with. I will recommend that the situation be looked in both ways. First on the effects on the carbon prize on Canada’s economy and secondly, on the effects this will have on the manufacturing industries. The third and the last recommendation, is that the Canada’s government need to introduce other manufacturing process that do not release lot of greenhouse gas. If this is hard to do, they can as well recycle the greenhouse gas.
References
Ang, B.W. 2005. “The LMDI approach to Decomposition Analysis: A Practical Guide.” Energy Policy 33 (7): 867 71.
Bataille, C., N. Rivers, P. Mau, C. Joseph, and J.J. Tu. 2007. “How Malleable Are the Greenhouse Gas Emission Intensities of the G7 Nations?” Energy Journal 28 (1): 145-70.
Carbon Trust. 2007. “EU ETS Impacts on Profitability and Trade: A Sector by Sector Analysis.” London.
