Thoughts on the "Green Shift"

So, Stephane Dion has released what he hopes will be, to borrow a computing term, the 'killer app' that delivers the Liberals back to power in Ottawa.

There are, of course, three approaches I could take:

1. To say "Hey, way to go with the copyright infringement!";
2. Say "What global warming? It's all sunspots, or farting cows"; or,
3. Argue some major concerns about the plan

Since there is a tendency to dumb down rhetoric as it is, I really think I should attempt to follow #3 as closely as my pea-sized brain allows.

The main thrust of the plan seems to be to tax people for the production of CO2, and then offset the tax with cuts to income tax. Sounds reasonable. You punish bad behaviour (pollution) and reward good behaviour (hard work) with one stroke of the pen. Heck, on that level, there's something attractive about it to an old Tory soul like me.

Unfortunately, as Newton discovered in Physics, in politics and economics, every action has an equal and opposite reaction.

The questions are these - Who pollutes? Who pays? What are the unintended consequences? Last, but certainly not least, will it make a difference?

First, who pollutes? Well, cities do. They have all of the factories, manufacturing plants, and over 80 percent of Canada's population. Sure, we rural people 'pollute' as we grow the food that other eat, but according to author Jared Diamond in his book "Collapse", the typical US farmer grows enough to feed 125 people (I am sure the Canadian number is similar). If people are going to divide the 'carbon footprint' of a charter flight that takes rich boomers to deep glaze their torsos in the Dominican Republic among the passengers, I am sure that we can divvy up the carbon that the 'dirty' farmer produces among all those who fill their faces without ever having to drive a tractor or pull a weed.

Unfortunately, while the urban dweller can hop on a bus or subway, the farmer cannot. While the urban dweller's employer - depending on the industry - may have the option of reducing their use of fossil fuel, the farmer does not (although if sweat and tears had some octane content, those who feed us would have enough fuel to be self-sufficient).

So, while the 80 percent of Canadians who live in the world of concrete and glass could do a little 'substitution strategy' to reduce their carbon tax hit, those who live in the rural areas, where incomes are generally lower, and where transportation costs are higher, will not be so lucky.

As with anything in economics, higher production costs will get passed on, and even the burghers of Toronto will end up paying more for their burgers. With oil at nearly $140, they are already.

But I'll get my income tax cut, and that will make up for it, you will say. Well, according to the Liberal "Green Shift" site, my rural family will save about $130 a month in income tax, and a comparable urban family would get about $110 per month extra.

Okay, so the good folks that ragged out Harper about the Child Care Benefit, saying "$100 a month won't cover the cost of a sitter or daycare" now argue that $10 more than that will cover higher fuel prices for your car, higher prices for everything that has to be shipped by a truck, or grown in a field, as well as the very stuff that warms your house prevents you and your family from suffering hypothermia during those wonderful Canadian winters of ours.

Of course, that's if you even file income tax, otherwise you are doubly screwed.

Well, at least we'll get our CO2 emissions under control...But wait, according to the experts, the impact will be negligible...If we fully implemented Kyoto, we would only delay, and not stop, the trend, and it would only be a 5 year stall.

The Green Shift is really nothing more than bad economics and bad policy wrapped up in good intentions, making it all the more worse as it assumes a "holier-than-thou" mantle.

Want an alternative? Well, Statistics Canada says that 55 percent of commuters in Toronto drive to work. Well, how about you leave the Land Rover in the driveway and ride the Red Rocket / GO Train / TTC bus to work every day, and quit expecting others to pick up the tab for your environmentally unsustainable lifestyle. Expand that to every Canadian city with a population over 200,000 and a good public transit infrastructure, and see how quickly the CO2 drops.

That is the only shift that we need. Anything else is a shaft.