Economic Instruments for Long-term Reductions in Energy-based Carbon Emissions

By the National Round Table on the Environment and the Economy (NRTEE)

The NRTEE has examined the role of economic instruments in supporting technologies with the potential to reduce energy-based carbon emissions on both the demand and supply sides of the energy equation. How a government taxes and spends has an enormous effect on the way the economy works – and the way to maximize this impact is to ensure policies work together to support over-arching goals, like a sustainable energy future.

The result of a two-year multistakeholder process, the NRTEE has developed a set of recommendations aimed at helping the country take a leadership position in the innovation of technologies that will lay the foundations of a sustainable energy future, in Canada and around the world.

PDF Version:
Economic Instruments for Long-term Reductions in Energy-based Carbon Emissions
(2.15 Mb - 132 pages)
Date: 2005
ISBN: 1-894737-09-1

Table of Contents

Preface

1. Background

1.1 Purpose of the Report
1.2 Ecological Fiscal Reform

2. Context: The New Energy Economy — Canada's Opportunity

2.1 Global Energy Trends
2.2 Canada’s Opportunity

3. Context: Maximizing Overall Advantages to Society—Long-term Carbon Emission Reductions within an Integrated Policy Framework

3.1 Co-benefits: Nine Reasons for an Integrated Policy Framework
3.2 Why Long-term Carbon Emission Reductions Cannot be an Implied or Secondary Objective

4. Economic Instruments for Long-term Carbon Emission Reductions and Technology Development

4.1 Economic Instruments and Canada’s Climate Change Plan
4.2 Macroeconomic Impacts of Fiscal Policy to Promote Long-term Carbon Emission Reductions
4.3 General Findings: Using Economic Instruments for Long-term Carbon Emission Reductions and Technology Development
4.4 Application of Targeted Measures
4.5 Transition Measures

5. A Coordinated, Long-term Carbon Emission Reduction Strategy

5.1 Staging and Considerations for a Coordinated Technology Transition Strategy

6. Lessons: The Experience with Assessing Fiscal Instruments

6.1 Data Reliability and Comprehensiveness
6.2 Sensitivities
6.3 Technology Paths
6.4 Examining Mid- to Long-Term Futures: Uncertainties and Unknowns
6.5 Market Settings
6.6 Other Issues

7. Summary of Findings

8. Case Study Scope, Boundaries and Methodologies

8.1 Overview of Case Study Methodologies

9. Specific Findings: Industrial Energy Efficiency

9.1 Status of Industrial Energy Efficiency
9.2 Status of Industrial Energy Efficiency to 2030 Assuming Business as Usual
9.3 Industrial Energy Efficiency Scenarios to 2030 with Government Intervention
9.4 Macroeconomic Impact: Industrial Energy Efficiency Case Study
9.5 Policy Implications: Industrial Energy Efficiency

10. Specific Findings: Emerging Renewable Power Technologies

10.1 Status of the Emerging Renewable Power Sector
10.2 Status of the Emerging Renewable Power Sector to 2030 Assuming Business as Usual
10.3 Status of the Emerging Renewable Power Sector to 2030 with Government Intervention

11. Specific Findings: Hydrogen Energy

11.1 Status of the Hydrogen Energy Sector
11.2 Status of the Hydrogen Energy Sector to 2030 Assuming Business as Usual
11.3 Status of the Hydrogen Energy Sector to 2030 Assuming Government Intervention
11.4 Macroeconomic Impact: Hydrogen Case Study
11.5 Policy Implications: Hydrogen Energy

12. Macroeconomic Impacts of the Proposed Measures

13. A Supporting Suite of Coordinated Economic Instruments

14. Summary of Recommendations, Part II

Industrial Energy Efficiency
Emerging Renewable Power Technologies
Hydrogen Case Study

Appendix A: Executive Summary: Case Study on Energy Efficiency

Appendix B: Executive Summary: Case Study on Renewable Grid-Power Electricity

Appendix C: Executive Summary: Case Study on Hydrogen Technologies

Appendix D: Selected Reading

Appendix E: Program Participants

Appendix F: Endnotes

Ecological Fiscal Reform and Energy Task Force Members