In general, economists consider the carbon tax to be the most effective measure for reducing emissions and tackling climate change. The Trudeau government seems to subscribe to this point of view. For example, its 2030 Emissions Reduction Plan states that carbon pricing is the “cornerstone” of the federal government's climate strategy. The trouble is that carbon pricing has a chequered history. Politically, it is a difficult climate policy to implement.
And once in place, current studies show that it generates limited results in terms of emissions reductions. Two reasons stand out: a carbon price that is often too low and the presence of numerous exceptions. Canada is far from the only country experiencing difficulties decarbonizing its economy through carbon pricing. Why is it so difficult to price carbon? Political scientists offer an explanation: the selection and sustainability of climate policies depend primarily on the influence of interest groups on the political syste