How will Ontario fare under the carbon tax?

- 2 - How will Ontario fare under the carbon tax? Assessing the impact of the carbon tax on business costs in various industries in Ontario As debate continues among Ontario’s policymakers about the costs and benefits of the carbon tax, this study looks at the potential impact of a $170 per tonne carbon tax on various industries in the province.1 The analysis provides a general overview of the pot. [...] Direct costs can be passed back to labour and capital, especially impacts are the cost that the carbon tax will impose on labour bearing much of the cost of the tax (McKenzie and carbon-emitting sectors and the cost of fuel or energy used Ferede, 2017). [...] The term “profit” means the operating surplus generated through the production of goods and services in the industry and includes pre-tax profits and the value of depreciation. [...] - 13 - How will Ontario fare under the carbon tax? Assessing the impact of the carbon tax on business costs in various industries in Ontario A P P E N D I X About the estimates: Impact of the carbon Limitations tax on production costs This analysis focuses solely on the cost implications Stokes Economics provided macroeconomic cost associated with the fuel charge component of the carbon projection. [...] The model assumes that the carbon tax is an input cost To quantify the impact of carbon pricing, the model uses and not a fixed cost in production, and that the average a “base case” forecast that includes the carbon price cost is equal to the marginal cost, reflecting the long- beginning at $50 per tonne in 2022 and escalating to $170 run absence of economies or diseconomies of scale.