Will Carbon Tax Constrain Oil Production in Canada?

Kopytin, I.; Maslennikov, A.; Синицын, М. В.; Zhukov, S. G.; Золина, С. А.

doi:10.1007/978-3-030-15577-3_73

Cited by 3 publications

(3 citation statements)

References 3 publications

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“…Many of the particularly mainstream LFFU approaches (e.g., carbon taxes) were discussed predominantly (though not entirely) in the context of the Global North, for example (inter alia), in the UK (e.g., Bebbington et al, 2020 ; Caldecott & Dericks, 2018 ; Johnstone et al, 2017 ), Norway (Bang & Lahn, 2019 ; Kopytin et al, 2020 ; Marsden et al, 2019 ), and the US (e.g., Hubacek & Baiocchi, 2018 ; Kefford et al, 2018 ; van de Graaf, 2018 ; van der Ploeg & Rezai, 2018 ), among others. Empirical research covering the Global South is steadily growing, with Muldoon‐Smith and Greenhalgh ( 2019 , p. 60) calling for a move “beyond the mostly Western European and North American perspectives” and others corroborating (Ansari & Holz, 2020 ; Bos & Gupta, 2018 ).…”

Section: Discussionmentioning

confidence: 99%

“…Most agree that “conventional carbon taxes might not be able to shape expectations on future climate policy” as they externalize the socio‐ecological costs (Kalkhul et al, 2020 , p. 15) and are difficult to design. Some nations like Norway have introduced emissions taxes decades ago but have been largely unsuccessful in curbing domestic oil production, and may imply similar outcomes when other producers follow suit, like Canada (Kopytin et al, 2020 ). Global South countries are also adopting such taxes such as South Africa and Ivory Coast (Mutezo & Mulopo, 2021 , p. 6).…”

Section: Analysis: Effectiveness Equitability and Feasibilitymentioning

confidence: 99%

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Equitable, effective, and feasible approaches for a prospective fossil fuel transition

Rempel

Gupta

2021

WIREs Climate Change

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Most fossil fuel resources must remain unused to comply with the Paris Agreement on Climate Change. Scholars and policymakers debate which approaches should be undertaken to Leave Fossil Fuels Underground (LFFU). However, existing scholarship has not yet inventoried and evaluated the array of approaches to LFFU based on their effectiveness, equity, or feasibility. Hence, this review article asks: What lessons can we learn from reviewing scholarship on proposed approaches to leaving fossil fuels underground (LFFU)? We identify 28 unique LFFU approaches, of which only 12 are deemed environmentally effective (e.g., fossil fuel extraction taxes, bans and moratoria, and financial swaps); eight involve moderate‐to‐high (non‐)monetary costs, and only four are deemed entirely just and equitable. Of the 12 environmentally effective approaches: only three were deemed cost‐effective (regulating financial capital for fossil fuel projects, removing existing fossil fuel subsidies, and bans & moratoria); merely four were deemed equitable (asset write‐offs, retiring existing fossil infrastructure, pursuing court cases/litigation, and financial swaps); and all were deemed institutionally problematic in terms of their feasibility (six were challenging to implement as they threatened the vested interests of powerful stakeholder groups). Moreover, the reviewed scholarship draws heavily on empirical studies of how these LFFU approaches can be optimized in European, North American, and Chinese contexts; fewer studies have explored the effectiveness and fairness of LFFU approaches in the South and/or in a North–South context. Future research should particularly focus on North–South fossil fuel financial flows, which have received comparatively little attention. This article is categorized under: The Carbon Economy and Climate Mitigation > Decarbonizing Energy and/or Reducing Demand

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Section: Discussionmentioning

confidence: 99%

Section: Analysis: Effectiveness Equitability and Feasibilitymentioning

confidence: 99%

Equitable, effective, and feasible approaches for a prospective fossil fuel transition

Rempel

Gupta

2021

WIREs Climate Change

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“…There is a growing body of work on the relationship between the economy and energy production in carbon-dependent countries and how climate mitigation efforts impact carbon-intensive sectors like oil and gas (Ike, Usman, & Sarkodie, 2020). This is important as studies have shown that climate transition efforts like the introduction of a carbon tax by major oil-producing countries like Norway and Canada have had little effect on oil production, but contributed to increased costs for consumers (Kopytin, Maslennikov, Sinitsyn, Zhukov, & Zolina, 2020). Studies have also shown that a carbon tax has material implications for the share price of publicly quoted companies (Bimha & Nhamo, 2017).…”

Section: Carbon Price Challenge For Resource-based Economiesmentioning

confidence: 99%

Carbon Costs and Credit Risk in a Resource-Based Economy: Carbon Cost Impact on the Z-Score of Canadian TSX 260 Companies

Oyegunle¹,

Weber²,

Elalfy³

2023

JMS

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Climate risks and climate risk-related policies on carbon threaten the ability of economies to thrive and will impact the credit risk of many sectors, primarily high-emitting sectors. Higher credit risks will also affect lenders if their credit portfolios are exposed to climate change risks. The introduction of carbon pricing policies will exacerbate this threat in resource-based economies such as Canada. While some research exists on climate exposure and risks to lending portfolios, there is a knowledge gap on how carbon pricing impacts individual commercial credit risk. Consequently, this study analyzes the effect of different carbon pricing scenarios on Altman’s z-score. Using the Canadian TSX 260 data between 2010 and 2020 as a sample, this paper applied the costs of different carbon prices using the Canadian Government’s carbon price regime of $0 to $170 to analyze Altman’s z-score variables until 2030. The results suggest that carbon price will significantly impact the credit risk of companies in high-emitting industries, such as the energy sector. We conclude that climate policy exposure in the form of carbon costs will have a real impact on credit risk and that lenders must consider carbon emissions as part of their credit risk assessment.

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Estimation of greenhouse gases shadow price in the English and Welsh water industry

Maziotis

Sala-Garrido

Mocholí-Arce

et al. 2021

Environ Sci Pollut Res

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Will Carbon Tax Constrain Oil Production in Canada?

Cited by 3 publications

References 3 publications

Equitable, effective, and feasible approaches for a prospective fossil fuel transition

Equitable, effective, and feasible approaches for a prospective fossil fuel transition

Carbon Costs and Credit Risk in a Resource-Based Economy: Carbon Cost Impact on the Z-Score of Canadian TSX 260 Companies

Estimation of greenhouse gases shadow price in the English and Welsh water industry

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