Cap-and-Trade Versus Carbon Tax: Which Works Better?
Earlier this month, Ontario, Quebec and Mexico struck the first international climate change deal since the United Nations summit in Paris last year. The three have agreed to develop carbon markets together, whereby emissions are capped, and companies can trade carbon credits. It has further fueled the debate -- does the cap-and-trade approach work or is a carbon tax more effective like the one adopted in British Columbia and soon Alberta, or are both just first steps to a more aggressive framework for mitigating the potentially devastating effects of climate change? Bloomberg TV Canada's Amanda Lang moderates a heated debate between Rick Smith, executive director of the Broadbent Institute, and Ken Green, senior director for Natural Resources of the Fraser Institute. (Source: Bloomberg)