Economic Commentary on British Columbia’s Climate Action Tax Credit: How Is It Creating an Equitable Environment in B.C.?

This paper examines the impact of British Columbia’s Climate Action Tax Credit on creating a more equitable environment in the face of increasing carbon taxes. By applying economic concepts such as marginal social/private costs and consumer/producer spending by the implementation of a Pigouvian tax (carbon tax), the paper analyzes the economic equity that theoretically should be present in British Columbia as a consequence of the tax credit. It analyzes several secondary sources and applies economic theory as per the International Baccalaureate Diploma Program.