The Canadian Province of British Columbia was an early adopter of a broad-based, revenue-neutral carbon tax that directly recycles 100 percent of the revenue it generates; British Columbia now has four years of experience on implementation and revenue distribution. Australia, after years of discussion with stakeholders from across the economy, has designed and now recently implemented its own partially revenue-recycling carbon tax. Taken together, their policy choices help illustrate the spectrum of options, dynamics, and pitfalls that might be anticipated elsewhere. This essay examines these revenue-recycling carbon-pricing mechanisms to assess their approach and efficacy.
Co-Author: Cara Goldenberg