Cap and Trade is popular with politicians where coal is king.
Cap and trade is a scheme for printing money and then using it to buy off major lobby groups. In Ontario we have almost no oil or gas production and we are no longer using coal to produce electricity. Why should Ontario sacrifice efficiency and equity to buy off players who don’t vote? – Players who will take the money they make trading Ontario caps home to stockholders in other countries?
The fact is that for Ontario to go to Cap and Trade is an economic mistake. If Ontario goes to a carbon Fee and Dividend, the rest of the country follows. That means that oil coal and natural gas producers lose and almost everyone else wins. I don’t see a good reason to transfer further trillions to the carbon companies, personally, but maybe some politicians can justify it.
I think Ontario is the lynchpin, and I think that all you get from including this federal government would be a weakened response. There is a lot of history to show that this is true.
So here is a question: should Ontario play hardball and adopt a scheme that keeps money in Ontario? Or should Ontario play give-away games? Every pipeline coming into the province is a pipeline sucking money out. Energy efficiency keeeps money here. Alternate energy keeps money here. A carbon fee keeps money here.