2017-048: Implications of Carbon Pricing for Canada’s Beef Sector: Quantitative Analysis and Assessment of Revenue Recycling Policies
Researcher: Brandon Schaufele
The aim of this project is to understand the impacts of a carbon tax on the cattle industry and the tools that could be used to reduce the impact on the industry. This includes implications from the Federal Carbon Tax policy in terms of beef farm profitability and competitiveness, interprovincial trade disruptions, and international trade implications.
While economists have often noted that the carbon tax will encourage businesses to lower their greenhouse gas emissions, they often assume that businesses compete only with other Canadian companies which are taxed in the same manner.
Dr. Schaufele notes in this research that carbon pricing in Canada ignores our globally integrated industry. Therefore, when selling beef on the international market, our costs are larger than our competitors in other countries which do not have carbon taxes. As a result, this decreases the amount of beef producers in Canada who are able to compete.
This research has been featured in Beef Business - https://issuu.com/skstockgrowers/docs/beef_business_may_2018_web