A revenue-neutral carbon tax and carbon efficiency: the case of British Columbia

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2025-07-07

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en

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This thesis examines the effect of the British Columbian carbon tax on the carbon efficiency in the province in general as well as in its economic sectors. Carbon efficiency is defined as the carbon intensity calculated by dividing the carbon emissions by the GDP produced by the industry. The results of the generalized synthetic control models suggest that the British Columbian tax is not effective in reducing the carbon intensity as well as the carbon emissions of the province. However, it indicates that the carbon tax is not affecting the GDP produced by the industry. Additionally, the results suggest that the carbon tax is not effective in reducing the carbon intensity in the economic sectors in British Columbia. Moreover, the findings in this thesis show an increase in the carbon intensity in the buildings sector due to the British Columbian carbon tax. Hence, this thesis is in line with the public concerns regarding the effectiveness of the British Columbian carbon tax.

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Faculteit der Managementwetenschappen