Canada: Carbon tax won’t park drivers

A carbon tax likely won’t persuade people to conserve gas, according to new figures from Statistics Canada that show the rising price of oil hasn’t compelled drivers to cut their consumption.

Nationally, gas prices rose 7.9% between March 2007 and March 2008, but Canadians spent 11.3% more at the pumps last year compared to 2006, indicating they consumed more gas despite the increased price.


“What we are not seeing is a decrease, or even a stabilization in fuel usage overall,” says Dale Marshall, of the David Suzuki Foundation.

Marshall points to the cost of fuel in Europe and Japan, which is about double what Canadians pay, as an example of where prices need to be to influence consumers’ decisions.

“It’s not a 5% or 10% increase in prices that will have any effect, but a 40% or 50% increase in gas prices that will,” he says.

Toronto Sun