The Canadian federal government has insisted that all provinces implement a price on carbon. The price started at$10 per tonne in 2018 and will rise to$50 per tonne by 2022. One of the goals of a carbon price is to increase the cost ofcarbon-intensive things like gasoline. Proponents of this carbon price(including the federalgovernment) argue that this will be good for the environment. Why would the government think that making people pay more for gas would help theenvironment? How do you think people will respond to this carbonprice?

Making people pay more for gas will help the environment because the government thinks that people will

A.

drive less and thus emit fewer greenhouse gases. As a result of this carbonprice, people are likely to driveless, take public transportation moreoften, and acquire morefuel-efficient vehicles.

B.

drive less and thus emit fewer greenhouse gases. As a result of this carbonprice, people are only likely to buy new vehicles lessoften, which will not reduce gasoline consumption.

C.

stop purchasing gasoline and thus emit next to no greenhouse gases.However, this result is unlikely. People will not make any changes in their gasoline consumption as a result of this carbon price.

D.

stop purchasing gasoline and thus emit next to no greenhouse gases.However, this result is unlikely. Poor people will not change their gasoline consumption because they need to use their vehicles to get to theirjobs, while rich people will not change their consumption either because the prices do not affect them. Onlymiddle-class people will reduce their gasoline consumption.