Economic reports from the Canadian Parliamentary Budget Officer and other official economic data sources

Canadian Government Releases Data on $25 Billion GDP Impact from Carbon Pricing

Jun 13, 2024, 04:38 PM

The Canadian federal government has released internal data on the impact of carbon pricing ahead of a Conservative motion demanding its disclosure. The data indicates that carbon pricing will decrease Canada's real GDP by an estimated $25 billion, or 0.9%, by 2030. This contrasts with a previous projection by the Parliamentary Budget Officer in March 2022, which estimated a 1.3% decrease in GDP by 2030. The modelling data also suggests that carbon pricing will lower greenhouse-gas emissions by more than 12% annually by 2030. However, the government has been reluctant to share the data, as it does not account for the cost of climate change or potential economic growth from climate investments. Additionally, some critics argue that the carbon tax will blow a $20 billion-a-year hole in the Canadian economy.