Using data on all vehicles registered in Canadian provinces from 2000-2010, we estimate the elasticity of the fuel economy of the new vehicle stock with respect to gasoline price. We demonstrate that a 10% increase in gasoline price causes a 0.8% improvement in the fuel economy of new vehicles....

This study evaluates the implications of an actual carbon tax on international trade in the agricultural sector. Applying uniformly to all fossil fuels combusted within its borders, the province of British Columbia unilaterally introduced a carbon tax on July 1, 2008. In 2012, the province...

Tax policy often breeds controversy, especially when rate changes are motivated by volatile resource sectors. This paper examines how provincial tax policies respond to changes in resource revenues. Specifically, it (i) estimates the "tax-resource" elasticity for Canadian provinces and (ii)...

Unilateral environmental regulation such as carbon taxation continues to raise concerns over leakage and adverse competitiveness effects. The implications of a carbon tax is especially important in Canada, a country currently implementing a nation-wide carbon price. Still, little is known about...