I found this news articles interesting to read, though it may be short:
Gas prices could rise, but Canadians want polluters to pay: Layton
www.theglobeandmail.com...
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Posted: April 29, 2011
Jack Layton, who has campaigned on promises to create a gas-price watchdog, conceded there’s no guarantee that his proposed climate-change
policies won’t be passed on to consumers at the pumps – but argued oil companies are trying to scare Canadians about the costs.
Conservative Leader Stephen Harper claimed this week that Mr. Layton’s plan to impose a cap-and-trade system on large carbon emitters would raise
the price of gas by 10 cents a litre. Other analysts have opined that it could lead to extra costs of just a few cents a few cents a litre at the
pumps.
So what is it about those "extra few cents' talk all about anyways? A linked article to this states this:
Harper’s running on fumes by mongering fear at the pumps
www.theglobeandmail.com...
Posted: April 29, 2011
The last refuge of opportunistic populism – if the dying days of the 2011 election are any hint – is woefully misleading rhetoric on
gasoline prices.
Given the high prices Canadians are paying for fuel, the only real surprise is that it took this long for the parties to start using the pinch at the
pump as a campaign wedge.
Though it doesn't say much about how Canadian tax payers will be affected by whatever strategy either Torries, NDP, or Liberals plan to employ, the
topic of "controlling" gas prices at the pumps scares the living bejesus out of me!
There is NO WAY gas prices will go down. Moreover, to maintain low gas prices means that there will be taxes employed onto Canadians through other
means. For crying out loud, we already have a "Carbon Tax" on all electronic goods and related goods such as CDs, etc...
As we continue to read the above article, it further says this:
First up was Conservative Leader Stephen Harper, wrongly accusing the NDP of a plot to send gasoline prices soaring through a cap-and-trade system.
As it turns out, the NDP proposal won’t do so, at least not very much – largely because it’s a woefully inadequate response to the challenge of
climate change, encompassing only about half the emissions that the Canadian economy spits out each year. Not included is one of the single biggest
sources of emissions: those from the tailpipes of drivers, otherwise known as voters.
Mr. Harper may have jumped the gun a bit in slamming the NDP, but he and others could be forgiven for assuming that the NDP would take climate change
seriously enough to propose an effective cap-and-trade program. And the NDP plan would increase prices – just not by as much as Mr. Harper
claimed.
Less generously, Mr. Harper continues to pretend that his own party has anything approaching a coherent plan for containing greenhouse-gas
emissions.
The reality is, having successively demonized carbon taxes and cap and trade, the Conservative approach to reducing emissions will likely devolve to
Soviet-style regulation. That is clumsy, and at best, at least as costly as a carbon tax, according to Andrew Leach, economist at the University of
Alberta’s school of business.
Of course, there were ample economic misstatements on Thursday, and not just by the Conservatives. Mr. Layton, too, was busy at work, floating the
tired idea of another inquiry into the great mystery of high gasoline prices. (Hint: Dig up those notes from the second day of economics class, the
ones that have supply and demand curves scrawled on them.)
The NDP Leader has said he would appoint an ombudsman to investigate whether gas retailers are colluding to gouge consumers, and might even regulate
gas prices.
Defending Big Oil is a lonely game, but here is the reality. Mr. Layton’s ombudsman will find what every one of the many exhaustive committees,
special investigators and probes have discovered. The gasoline industry is intensely competitive, to the point where it’s close to a textbook case
of pure market competition.
As for capping prices, the only hitches would be a sudden drop in supply, 1970s-style lineups at the pumps and the possible need to abrogate NAFTA.
The irony is this. If Canadians really want to save on energy costs, they need to look at themselves, not oil companies. Demand pushing too close to
available supply is the piston behind price gyrations at the pump.
Cut demand – say, through a carbon tax or comprehensive cap-and-trade program – and you cut prices.
So there we go, it starts to talk about market competition and laws of supply and demand.
I agree however, that Canadians, much like our US counterparts, need to look at just how much we are consuming gasoline. It seems like the big costs
are arising by how much we drive (ie. need vs wanting to drive). I am sure we will save more by driving more conservatively and only drive if we
really need to drive.
What do you think ATS members? Whether we like it or not, we are all a part of this rising gasoline price trend!