Ottawa

Better know a talking point

Stephen Gordon skewers a Conservative talking point.

Sectors that cannot absorb the tax will see declining employment, and employment in the other sectors would grow. If the tax is introduced gradually, these shifts will absorbed into the usual flows in and out of employment, and total employment wouldn’t be affected even in the short run.

To the extent that a carbon tax will reduce employment in certain sectors, then yes, it “kills jobs.” So does a cap-and-trade system. And more importantly, so do regulations. Just as with a carbon tax and cap-and-trade, the regulatory approach that the Conservatives now prefer increases the cost of doing business. Some sectors will be able to adapt to this, some will not. Same with a carbon tax.

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