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Record W3177076934 · doi:10.55016/ojs/sppp.v9i1.42581

Make the Alberta Carbon Levy Revenue Neutral

2016· article· en· W3177076934 on OpenAlexaffabout
Kenneth J. McKenzie

Bibliographic record

VenueThe School of Public Policy Publications · 2016
Typearticle
Languageen
FieldSocial Sciences
TopicCanadian Policy and Governance
Canadian institutionsUniversity of Calgary
Fundersnot available
KeywordsRevenueEconomicsCarbon neutralityCarbon fibersEnvironmental scienceBusinessMathematicsFinanceGeologyGreenhouse gasOceanographyAlgorithm

Abstract

fetched live from OpenAlex

The new carbon levy of $30 per tonne, announced in November 2015 as part of the report issued by the Alberta government’s Climate Leadership Panel, is a positive move in the direction of pricing carbon emissions. The levy is expected to generate $3 billion in net revenue by 2018, and possibly as much as $5 billion by 2030. While there is some discussion in the report of what should be done with the revenues generated by the carbon levy, it is somewhat vague on the details, leaving a number of options open to the government. The purpose of this briefing paper is to argue that the revenues from the carbon levy should be used to lower existing taxes – the carbon tax should be revenue neutral, generating no new net revenue for the government. The basic argument is that the carbon levy can be viewed through two lenses. The first lens is the imposition of a price on carbon emissions which (at least partly) reflects the social costs of emissions. Viewed through this price lens, the carbon levy plays an important role in incenting firms and individuals to change their behaviour and move towards less carbon intensive activities. The second lens is the role of a carbon tax as a part of the broad revenue system. Viewed through this tax lens, a carbon tax is not a very good, or efficient, way of generating revenue. The reason for this is somewhat nuanced, but the basic idea is that the carbon tax is applied to a narrower base than broader-based taxes. Broad based taxes generally impose lower costs on the economy than narrow based taxes. Moreover, carbon taxes interact with other taxes in the economy, exacerbating the economic costs associated with those taxes. And those costs are quite high – research shows that the total cost to the economy of raising an additional $1 in revenue through the corporate income tax in Alberta is $3.79; for the personal income tax the cost is $1.71. These taxes therefore impose higher costs on the economy than they raise in revenue. Swapping revenue from the carbon levy for these taxes in a revenue neutral manner would lower these costs, generating a substantial return to the provincial economy relative to other uses. If the government wants to fund other priority areas – be it public infrastructure, investment in complementary initiatives to reduce emissions, or even deficit reduction – it is better to finance these initiatives through more efficient and less costly taxes than a carbon tax. The basic approach advocated here is as follows: price emissions appropriately by way of a carbon levy, use the revenue to reduce existing taxes in a revenue-neutral manner, evaluate the benefits of spending money on other initiatives, and finance those initiatives using the least costly configuration of taxes possible (subject to equity considerations).

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.003
metaresearch head score (Gemma)0.010
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: Not applicable
GenreCandidate signal: Commentary · Consensus signal: none
Teacher disagreement score0.980
Threshold uncertainty score0.898

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0030.010
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0000.001
Bibliometrics0.0010.001
Science and technology studies0.0030.003
Scholarly communication0.0060.002
Open science0.0020.003
Research integrity0.0050.005
Insufficient payload (model declined to judge)0.0220.007

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.038
GPT teacher head0.312
Teacher spread0.274 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designNot applicable
Domainnot available
GenreCommentary

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2016
Admission routes2
Has abstractyes

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