essay question

Read the following carefully. In the Paris Climate agreement, Canada has agreed to the following: 1. Canada has pledged to, by 2030, cut its greenhouse gas (GHG) emissions by 30 per cent from 2005 levels. 2. As one of the developed countries, Canada has committed to contribute to the green growth funding of at least $100-billion a year between 2020 and 2025 to help emerging economies deal with the effects of climate change. To achieve the above goals, The Government of Canada, along with most provinces and territories has agreed to the Pan-Canadian Framework on Clean Growth and Climate Change. As outlined in the framework, carbon pricing systems in Canada need to meet the following criteria: 1. Provinces can choose which type of system to implement: either (i) a direct pricing system (such as a carbon tax like British Columbia’s or a carbon levy combined with a performance-based emissions system like Alberta), or (ii) a cap-and-trade system (e.g., Ontario and Quebec). 2. For jurisdictions implementing an explicit price-based system, the carbon price should start at a minimum of $10 per tonne in 2018, and rise by $10 per year to $50 per tonne in 2022. 3. Provinces with a cap-and-trade system need to have (i) a 2030 emissions reduction target equal to or greater than Canada’s 30 percent reduction target; and (ii) a cap-and-trade system with declining (more stringent) emission caps (to at least 2022) that correspond, at a minimum, to the projected emissions reductions that would have resulted from applying the direct carbon price that year (e.g., the reductions that would have resulted from a $10 per tonne direct price in 2018). Please write an essay on Carbon Pricing in Canada (maximum 1100 words). In your essay, the following should be included. 1. Explain the reasons the market-based instruments, such as carbon tax and cap-and-trade, are more cost effective and efficient than command and control. 2. Please compare cap-and-trade and carbon tax. You may provide examples of the two adopted in different provinces and territories in Canada. Draw graphs to show that theoretically, these two instruments can be designed to achieve the 30% goal. If you are the advisor to the Minister of Environment in Saskatchewan, which instrument would you suggest for the province to adopt and why? 3. From your analysis (either under cap-and-trade or carbon tax system), please provide suggestions for Canada to finance the green growth fund

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