Dion's 'Green Shift'

I think most of us have come to the realization that something needs to be done to reduce our fossil fuel consumption. Even if the damage done by our greenhouse gas production is irreversible, the bottom line is oil is a non-renewable resource. Once it is gone, it's gone - then what? I am a firm believer that people will continue to engage in behaviour for as long as the benefits of said behaviour outweigh the costs. So, it seems to make sense that people will continue to over-consume oil and its byproducts until they really have to pay for it. Apparently Liberal leader Stephane Dion shares this insight, which has motivated him to roll out his 'Green Shift' plan.

The basic idea behind the plan is contained in its name. Increase taxes on gas consumption, cut taxes elsewhere. There are a few points of this plan that, I think, are quite strong. First, I like that it isn't a "tax grab" (despite what Stephen Harper would like us to believe). In fact, Dion stands so firmly behind his claim that his plan is 'tax neutral,' that he says, if he is given the opportunity to implement his green ideas, he will invite the Auditor General to "look at the numbers and confirm this each and every year to Canadians." In line with this not being a scheme to raise more money for the federal government, the plan also seems to make economic sense. From my very rudimentary understanding of how taxation works, the least disruptive taxes are those which are indirect (which don't tax our incomes or savings). Technically (although not practically) these are voluntary taxes. Of course, we can't entirely abstain from the use of fossil fuels in Canada, but we can become conscious of the amount of these fuels that we use. I also like that the Liberals have considered that different groups will be affected differently by carbon taxation, like those who live in rural and northern areas of the country, as well as low-income families, and have worked these considerations into the plan.

There are a few points that I find puzzling, especially the idea not to tax gas at the pumps. We hear that the rising cost of gas, as it is, has people changing their driving habits, so perhaps that is all that is necessary. I don't know. But it does seem that more options exist in how we transport ourselves, than in how we keep our homes heated in the lovely -30 Canadian winters. At the same time, I know that many people could alter their heating/cooling habits. For example, my roommates like to keep our house warm enough in the winter that they can walk around in shorts and t-shirts, and cool enough in the summer that I don't remove my sweatshirt and slippers until right before walking out the front door!

Anyway, it seems to me that there is some real potential behind Dion's 'Green Shift'. I also think that it's rather bold of him. He might find that he's just committed political suicide, or maybe enough people in this country will decide they are finally ready to walk the walk and cease simply talking the eco-talk. I'm interested to see how this all plays out through the summer, and, in particular, during the fall campaign which looks to be inevitable.

Thoughts?