Emissions Policy in Canada: Past Failures and Future Promises




Huff, Mathew

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Climate change represents a challenging problem in public policy. This project examines various policy solutions to rising emissions, and suggests one that might be best suited to Canada, a highly-integrated, highly-developed economy which relies on natural resources, including fossil fuels, for its balance of payments, governmental revenues, and a small portion of its GDP. It adopts a public policy framework from Simpson, Rivers and Jaccard (2008) to analyze policy solutions using the following criteria: political acceptability, economic efficiency, administrative feasibility and effectiveness at reducing emissions. Additionally, it offers substantial discussion relating to the potential constraints and opportunities to climate change policy presented by NAFTA, compliance with which is key to the viability of any emissions regime. It advocates an upstream cap-and-trade system, integrated with the NAFTA area and regulated by an empowered Commission for Environmental Cooperation (CEC), as well as complementary policies to lower emissions in inelastic sectors.



climatic changes, cap-and-trade system, NAFTA