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We're having a hot air wave: Different approaches to global warming
Michael Hlinka
Regardless of the various disagreements over the cause, there’s a consensus building that global warming is a problem and something has to be done about it.
But it would be delusional of me to suggest there’s anything close to a consensus forming about how to deal with it. We do know there are two broad approaches Canada could take in limiting our carbon dioxide emissions: a market-based or command-economy approach.
Whatever we do, market forces should decide which ones of us should be allowed to pump carbon dioxide into the Canadian environment. Let’s start with taxes on carbon-based energy products.
We could hike gasoline taxes to the point where serious substitutions were made in our choice of vehicles. As gas became more expensive, resources would be spent on keeping cars tuned and energy efficient.
There are talks about giving out carbon dioxide emission credits to industry. In effect, these would give companies the “right” to pollute. Nothing should be given away! These credits should be auctioned in a very transparent and profit-maximizing way. The industries that add the most value to the Canadian economy could afford to pay the most and return some of that value to the rest of us.
There are some very difficult choices facing Canadian society. If we really believe global warming is a serious problem, some significant sacrifices will have to be made.
How we live our lives and conduct our business will never be quite the same. If we don’t act, then we’re just blowing a lot of hot air…and that’s the last thing anyone needs if the world is already getting warmer! b2b
Michael Hlinka, based in Toronto, provides daily business commentary to CBC Radio One and a bi-weekly column syndicated across the CBC network. He also conducts financial planning courses.
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