Carbon pricing and mind the hissing /

For example, choices must be made regarding the types and development stages of the technologies to be promoted, the design of support programs and their governance. [...] The first measure can be seen as addressing concerns for low-income households, whereas the second responded to expressed concerns about the unfair burden posed on Northern and Rural households.1 In a sense, B. C. defines one extreme of the range of revenue allocation strategies available in that all of the carbon revenue was earmarked to either reduce other taxes or increase transfers. [...] The cap and trade system in Québec is harmonized and integrated with the system in California in order to allow permit trade between the jurisdictions under the Western Climate Initiative. [...] Alberta is in a sense at the other extreme of the range of allocation strategies compared to B. C., since none of the revenue has been used to reduce existing distorting taxes.7 Further, none of the funds have, so far, been returned in terms of household focused transfers. [...] The bottom line of a carbon tax with revenue recycling will depend on the initial rates of the taxes as well as the respective elasticities of substitution of labour and capital with the taxed fuels.