Environmental proposal

Many people here have heard of a "carbon tax" which would increase the costs of energy. The idea behind such a tax is to reduce consumption of fossil fuels and other carbon producing energy sources, which are a direct cause of global climate change. Instead of a government imposed carbon tax, what would the effects be of a carbon REBATE, whereby corporations and individual homes were give a cash rebate for reducing their annual carbon production? The administration of such a proposal would be challenging, as a baseline annual total would have to be compiled by a government entity before the program could begin. What I'm proposing is that for every ton of carbon dioxide that has been reduced from the baseline numbers, homeowners and businesses could receive a refund of say, $15.00. Theoretically, this would cost the government money, but any reduction in income would be absorbed by consumer purchases of more expensive but environmentally friendly technology. In comparison, the costs of purchasing "greener" appliances would be covered by the rebates being paid to the homes and businesses, resulting in a new micro-economy regarding green tech. As such technologies begin to gain popularity, price would be controlled through competition to ensure greatest number of sales, making the switch manageable for business as well as the government and the consumers. As an incentive, the rebate could increase at certain points when exceptional amounts of reduction have occurred, an example being at one ton per household or thirty tons per business.
EDIT: I got some numbers off of the BC government website, so theoretically this would be the measure in which this policy would proceed, matching the carbon tax and making both revenue neutral to each other.



Liquid Fuels
Gasoline ¢/Litre 2.41 3.62 4.82 6.03 7.24
Diesel ¢/Litre 2.76 4.14 5.52 6.89 8.27
Light Fuel Oil ¢/Litre 2.76 4.14 5.52 6.89 8.27
Heavy Fuel Oil ¢/Litre 3.11 4.67 6.22 7.78 9.33
Aviation Gasoline ¢/Litre 2.45 3.67 4.90 6.12 7.34
Jet Fuel ¢/Litre 2.62 3.93 5.25 6.56 7.87
Kerosene ¢/Litre 2.56 3.84 5.12 6.40 7.68

Gaseous Fuel
Natural Gas ¢/GJ* 49.88 74.82 99.76 124.70 149.64
Propane ¢/Litre 1.53 2.30 3.06 3.83 4.60
Butane ¢/Litre 1.76 2.65 3.53 4.41 5.29
Ethane ¢/Litre 0.98 1.46 1.95 2.44 2.93
Pentane ¢/Litre 1.76 2.65 3.53 4.41 5.29
Coke Oven Gas ¢/GJ* 42.31 63.47 84.62 105.78 126.93
Still Gas ¢/GJ* 51.22 76.83 102.44 128.05 153.66

Solid Fuels
Coal - Canadian Bituminous $/Tonne 20.79 31.18 41.58 51.97 62.36
Coal - Sub-Bituminous $/Tonne 17.72 26.58 35.44 44.30 53.15
Coal - US Bituminous $/Tonne 24.39 36.58 48.78 60.97 73.16
Coke $/Tonne 24.87 37.30 49.74 62.17 74.60
Petroleum Coke ¢/Litre 3.67 5.51 7.34 9.18 11.01
Tires - shredded $/Tonne 23.91 35.87 47.82 59.78 71.73
Tires - whole tires $/Tonne 20.80 31.20 41.60 52.00 62.40

* Gigajoule

If the means to measure these fuels were produced, a proper carbon rebate could be created. Since this is problematic, a pragmatic solution would be to focus specifically on liquid fuels and coal, which are easily tracked and can be rebated easily each year to stack with the carbon tax. This could be done by using the more easily detected CO2e (carbon dioxide equivilant) emissions created by all fuel sources, which would be calculated at the following rates for each of the coming years.

July 1, 2010 - $20 per tonne of CO2e emissions
July 1, 2011 - $25 per tonne of CO2e emissions
July 1, 2012 - $30 per tonne of CO2e emissions
July 1, 2013 - $35 per tonne of CO2e emissions

In order for this to be revenue neutral, 1.849 billion dollars in eco-friendly sales have to be purchased, which is returned to the consumer via both lower carbon tax payments and a carbon rebate equal to the amount of CO2e reduced from the previous year's consumption will be sent to each household.