Economists defend Liberals' carbon price as political rhetoric heats up

OTTAWA -

Dozens of Canadian economists are issuing an ardent defence of Canada's price on carbon, as the government faces increased pressure from Opposition Conservatives and provincial premiers to pause a planned increase to the levy.

A growing number of premiers have joined the federal Conservatives and come out against raising the carbon price from $65 to $80 per tonne as scheduled for April 1.

The economists released an open letter in response to the intense political rhetoric that has garnered 80 signatures from academics across the country as of this afternoon.

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The letter says signatories support heathy public debate, but it should be based on facts and sound evidence.

The economists say several arguments against the carbon price are based on myths, and the levy is actually the least costly way to reach Canada's climate goals.

The letter says the most vocal opponents of the policy have not said how they would reduce greenhouse-gas emissions at a lower cost.

This report by The Canadian Press was first published March 26, 2024.