Canadas
energy consumption per capita is among the highest in the world, owing
mainly to a large natural resource endowment and a high concentration of
energy-intensive industries.The
Canadian federal government faces the difficult challenge of building consensus
for increased energy efficiency and pollution control, while at the same
time protecting economic development of its vital energy industry.
Energy
production makes up about 8% of Canadas GDP.It
is an essential component of the countrys national economy.However,
the energy section is also responsible for 90% of the nations greenhouse
gas emissions. Because of these alarming statistics, new legislation has
been enacted over the past few years to care for the environment.
Federal
and provincial authorities share responsibility for the Canadian Environmental
Policy. However, the provinces have primary authority over pollution control,
in accordance with their provincial property rights.Provincial
responsibility over local authorities also gives the provinces power in
such areas as waste treatment and garbage disposal.Under
the Canadian Environmental Assessment Act, which was enacted in1995, the
federal government began to extend their reach with regard to pollution
control.They began to enforce their
authority in areas, such as shipping, public works (dams and harbors),
inland fishing and lake improvement.
The
environmental authority in each province grants certificates of approval
in accordance with local laws and regulations.All
companies are generally required to submit detailed applications showing
that contaminants emitted from their premises into the water or air fall
within prescribed limits.Strict
regulations also apply to dumping toxic waste.
Many
environmental measures encourage corporate recycling, and households in
garbage recycling programs. An example of a measure implemented in the
province of British Columbia is provided below.
The
federal and provincial government are committed to their environmental
policies.Fines on corporations
violating environmental regulations have been drastically increased in
recent years.Prosecutions have
become more common.
The
following chart lists the types of environmentally related taxes, which
have been enacted and are currently being enforced by the federal and provincial
governments.
Environmentally
Related Taxes
Example:
Canadian Energy Policy
In
1995, the Canadian federal government began to revamp its energy and environmental
policy on energy efficiency, alternative energy sources, and pollution
control.They stopped subsidizing
energy megaprojects such as large-scale oil and gas field development.The
government limited its support in the energy industry to science based
projects, only.
Canadas
energy policy objectives include the following:
·Pursuing
a market-oriented energy policy and promoting improved competitiveness
and efficiency;
·Streamlining
energy regulation, which has been lessened considerably since the 1980s;
·Continuing
cooperation between the federal and provincial governments on energy and
environmental policy;
·Carrying
out the Efficiency and Alternative Energy (EAE) Program to improve energy
efficiency, primarily through standards and equipment labeling.
Example:
Provincial Environment Tax
ONTARIO:Tax
for Fuel Conservation
Ontario’s
Tax for Fuel Conservation (TFC) was enacted to combat the high environmental
impact of the automobile, specifically as fuel consumption contributes
to air pollution.The goal of the
tax was to protect the environment and conserve energy.
The
TFC was introduced in 1989 and was levied on fuel-inefficient vehicles.The
tax was calculated on a scale, increasing with fuel consumption above a
base of 6 liters per 100 kilometers.The
tax was revised in 1991.Rates were
increased, coverage extended to 250 car models, the threshold at which
the tax was applied was lowered, and sports cars were included.
The
current tax is a flat $100 per vehicle and is administered by the Ontario
Ministry of Finance. The key stakeholders in this tax are car purchasers
and manufacturers. One of the criticisms of this tax law is that the tax
should be disseminated more effectively.Most
car buyers only learn of the tax after they have made the decision to purchase
a car. Another criticism is that the tax should include light truck and
vans and be broader based if the province wants to change the purchasing
behavior of the consumers.
Example:Environmental
User Fee to Control the Amount of Waste
BRITISH
COLUMBIA – Capital Regional District (CRD) : The User Pay WasteManagement
Initiative
According
to an article in the Green Budget Reform Case Studies, Canadians produce
more solid waste per capita than any other nation in the world.This
lead to growing pressure for – and opposition to – new landfills.In
1990, a user fee for household waste management and tipping fee was enacted
to reduce the per capita waste levels by 50% from 1989 to 1995, and to
fund a state-of-the-art landfill operation.
The
Use Pay Waste Management Initiative has five main elements:
·The
tipping fee for using [a] landfill was raised from $10.50 (Cdn) per [ton]
in 1998 to $75 per [ton] in 1993.An
increasing number of items were banned and higher tipping fees for selected
substances, such as gypsum wallboard and asbestos, were instituted.
·The
efficiency of [a] landfill operation has been improved so that the allowable
ratio of garbage to daily cover is now 6:1, twice what it was five years
ago.
·Within
the four core municipalities, each household is charged a basic annual
fee of $100 to $140 for the collection of the equivalent of one can or
bag of garbage per week.
·The
municipalities charge additional fees, ranging from $1.50 to $2.50 for
each extra can or bag.Residents
must purchase a garbage sticker to affix to the extra can or bag.
·The
CRD provides a wide range of recycling services and educational programs
to help residents reduce their garbage.These
programs include: a regional blue box program; staffed municipal drop-off
depots (for corrugated cardboard, boxboard, mixed paper, junk mail, magazines,
catalogues, telephone books and pourable plastic bottles);backyard
composters; a composting and organic gardening demonstration centre; centralized
yard and garden composting facilities, and a salvage area and multi-material
recycling drop-off facility at the Hartland Landfill site.The
cost of these initiatives is funded by increased tipping fees.
The
fees (taxes) are administered by each municipality.The
key stakeholders are householders, recyclers, and the municipalities.
Canada
along with many other counties has become more aware of the environment
and its mortality in the past ten years.Even
thought they have initiated many community and corporate programs to encourage
protection of the environment, imposing taxes and enforcing regulations
appears to be the most effective.
References
1.Government
Budgets, The Tax for Fuel Conservation in Ontario, http://www.iisd.ca/greenbud/taxfuel.htm
2.Green
Budget Reform Case Studies, http://iisd1.iisd.ca/greenbud/makingb.htm
3. Government
Budgets, The User Pay Waste Management Initiative in the Victoria Capital
Regional Dist. BC., http://iisd1.iisd.ca/greenbud/userpay.htm
4.Environmental
Taxes in OECD Countries, OECD Publications, 1995
