Please refer to the case study: PRICING CARBON: THE BIRTH OF BRITISH COLUMBIAS CARBON TAX

1. Discuss the Campbells motivation for introducing a bold climate policy in his second term. Tell me about British Columbia (BC). What are the political and economic forces at play in 2006 and 2007 at BC? What are the important factors that one needs to keep in mind about the province?

What is the primary source of electricity in BC?

2. Why do you think Premier Gordon Campbell will decide to set a goal of one third reduction in greenhouse by 2030?

3. Campbell knew he had to go for Pricing Carbon. The choice they faced was between Cap and Trade and Carbon Tax. What factors was Campbell considering when he was weighing between the two options? Why would Campbell have taught that the Cap and Trade will require both resources? Why wouldnt Campbell tell every industry what the cap would be?

4. Campbell is noted for cutting tax in his province to the extent BC becoming the lowest tax province in Canada, so why the U-turn to introduce the Carbon tax. Is this a political smart move?

5. How did Campbell design tax? What design features were creative and made this tax more acceptable to both public and businesses? Or What were the elements that helped neutralized some of the oppositions?

6. Identify some of the issues Campbell considered when designing the revenue neutrality portion of the carbon tax.

7. If Campbell was looking at the potential opposition, he was likely to encounter, he probably wouldnt have considered that the New Democratic Party would put their environmental base at risk, and yet they did. Why? What lesson have you picked from the BC case?