Writing in The Globe and Mail, Roger Martin and Alexander Wood argue that carbon pricing could make Canada more economically competitive:
The logic underlying such an argument is fairly straightforward. Carbon pricing can help drive innovation in technologies and business models that promote resource efficiency, particularly in relation to energy. For a country such as Canada, which annually ranks among the most energy-inefficient economies in the world, this presents a huge opportunity. That is because there is an increasingly strong case for how improving resource efficiency translates into improvements in productivity, which is the Holy Grail of competitiveness for economies such as Canada’s.
Every new argument in favour of carbon pricing is potentially useful, given the key role such policies seem likely to play in encouraging the transition to zero carbon forms of energy. Quite possibly, it is especially useful to develop strong economic arguments, so as to be able to respond to the frequent assertion from those who don’t want to take action on climate change that carbon pricing would cause serious economic harm.