Choose Wisely: Options and Trade-offs in Recyling Carbon Pricing Revenues (Canadian Ecofiscal Commission)

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A carbon price creates financial incentives for businesses and households to adjust their current consumption and investment patterns, and also to adopt and develop cleaner technologies in the future. But the price is only half the story as carbon pricing policies can generate substantial revenue. How this revenue is recycled back to the economy has important implications for both economic and environmental performance. This report by Canada’s Ecofiscal Commission develops a framework for governments examining how to recycle revenues from carbon pricing mechanisms.