Comparing Stringency of Carbon Pricing Policies (Canada's Ecofiscal Commission)

More stringent carbon pricing policy leads to greater emissions reductions. This report by Canada’s Ecofiscal Commission seeks to provide governments with a common, consistent framework for comparing the stringency of provincial carbon pricing policies in Canada. It considers five metrics of stringency, including two new metrics that seek to account for design differences between provincial policies. These metrics can support efforts to benchmark the contributions of existing Canadian provincial carbon pricing policies and efforts to coordinate provincial policies nationally. The report finds that while considering multiple metrics of stringency is useful, it concludes that a trade-adjusted­ coverage carbon price is a practical and flexible means of comparing stringency across provincial policies that could be especially useful in efforts to coordinate provincial policies.