Environmental Science Undergraduate Thesis: Nova Scotia’s Carbon Tax Potential

Abstract

This paper explores the potential for a carbon tax in Nova Scotia as a means of meeting the provincial targets for carbon dioxide equivalent reductions of 10% below 1990 levels by 2020. The study first evaluates the current carbon tax policy in place in British Columbia and compares Nova Scotia to British Columbia. Similarities and differences between the coastal provinces are assessed in climate change risks, fossil fuel production and climate policy. Three potential tax progressions were then simulated on Nova Scotia Power Incorporated (NSPI) as a case study. The tax progressions include a tax modeled from the current BC tax, a constant tax rate and an increasing tax rate that were designed to meet the emissions reduction goal. All three carbon tax progressions are theoretically capable of meeting the reduction target while marginally increasing electricity rates. There are however, many environmental and socio-economic benefits and downfalls associated with this climate policy. Due to the limitations of this study more research into this area is needed before conclusive results can be found.