Low Carbon Economy

In addressing climate change, a solid consensus has emerged on the importance of placing a price on emitted carbon, whether through a tax or cap-and-trade system. Our work focuses on designing a carbon pricing policy and market models that are pragmatic and workable.

SP’s top policy research priorities in this area include:

Design of Carbon Pricing Systems: Investigate effective and efficient new carbon pricing approaches for Canada; uncover the current state of knowledge and policy experience on this issue.
Carbon Pricing Governance, Revenues Management and Interjurisdictional Issues: Research the governance and management of pricing systems; seek ways to integrate systems across national/provincial borders and promote more effective governance on all levels.
Carbon Pricing and Low-Carbon Technology: Examine how carbon pricing and revenue recycling can provide incentives for low-carbon technology development/deployment.
Impacts and Effectiveness of Carbon Pricing: Investigate the effect of pricing on behaviour, in order to ensure pricing systems can have real effects for sustainability, and researching distributional effects and options, to promote more socially just carbon pricing systems.
Carbon Pricing, Innovation & Productivity: Analyze the role of carbon pricing in promoting innovation, productivity, and competitiveness.