[Environmentcomm] Star Editorial - Not so crazy economics and Don Martin column - Weird weather could help Grits' carbon tax gamble

In his official biography, Prime Minister Stephen Harper calls himself = an economist, a label that would certainly lend credibility at first = blush to his claim last week that Liberal Leader St=E9phane Dion's = proposed carbon tax is "crazy economics."

But most professional economists would say that a carbon tax is the = sanest way to fight climate change and that it is Harper's assertion = that's crazy.

Don't take our word for it. Ask one of Canada's pre-eminent economists, = Tom Courchene, who is the Jarislowsky-Deutsch Professor of Economics and = Financial Policy at Queen's University and senior scholar at the = Institute for Research on Public Policy. Courchene, a former candidate = for the Progressive Conservative party, made his views known in a speech = this month, titled Climate Change, Competitiveness and Environmental = Federalism: The Case for a Carbon Tax.

Then there is Jack Mintz, the former president of the C.D. Howe = Institute, who currently holds the Palmer Chair in Public Policy at the = University of Calgary. As he sees the options for fighting global = warming, "carbon taxation looks the best of the lot." Dion's plan seems = to have drawn heavily on a carbon tax that Mintz designed.

If these high-powered Canadian economists are "crazy," then so must be = Paul Volcker, former chairman of the U.S. Federal Reserve, and Columbia = University economics professor Joseph Stiglitz, a Nobel laureate who = also served in Washington as former chair of the President's Council of = Economic Advisers and chief economist of the World Bank - as well as a = majority of economists polled by The Wall Street Journal.=20

A Mackenzie Delta town 200 kilometres north of the Arctic Circle was = Canada's hot spot Monday.=20

Inuvik reached a perma-defrosting 28C under 24-hour sunshine late Monday = afternoon. Mercifully for its 4,000 hearty residents and the odd polar = bear, it was a dry heat.=20

That rare northward pump of tropical temperatures may just be a one-day = freak of jetstream-oscillation, but it lit up federal Liberal faces as = their party prepares to unleash a dozen MPs to sell the carbon tax, = oops, Green Shift strategy.

The best way to sell Canadians on climate change is to whack them with a = dramatically changing climate, the weirder the better and preferably in = Canada, to give a domestic urgency to the problem.=20

If Liberal leader St=E9phane Dion could order up a severe windstorm or = funnel cloud to swirl on command as the backdrop for his carbon tax tour = this summer, if only so he could blame Conservative climate change = deniers, he'd gladly risk being swept away.=20

As the battle for public opinion begins, Liberals were mapping out tours = for their key sales force -- MPs Bob Rae, Martha Hall Findlay, David = McGuinty and Michael Ignatieff being the A team, a designation that had = a few noses out of joint in the caucus.

Mr. Dion is committed to dozens of days on the road, putting his = leadership to the test in big and small events across the country = including, apparently, oilpatch central in Calgary where rotten tomatoes = will be seized at the door.=20

The Conservatives, in turn, are taking a wait-and-see position, content = to fight the battle in tax-mocking press releases without deploying = snipers for an organized assault or accepting Mr. Dion's challenge to a = debate with Stephen Harper.=20

The uncharacteristic blustery reaction by the Prime Minister -- calling = the plan "crazy" and "insane" and warning it would "screw everybody = across the country" -- is curious.

This economist policy wonk has a deeply analytical brain and picks words = carefully for maximum impact, yet he seemed unable to muster more than = elementary taunts as a response.=20

It could mean, as Environment Minister John Baird told me recently, he = just couldn't believe Mr. Dion would do a U-turn on the carbon tax after = campaigning so vehemently against it only 18 months earlier during the = leadership contest.=20

As such, it might have looked like gift-wrapping on a majority = government for the Conservatives, leaving Mr. Harper giddily = tongue-tied.

But it could also mean the Conservative war room, which thought it had a = choreographed response for every conceivable Liberal action, was caught = flat-footed by Mr. Dion gambling his leadership on a policy that, while = seemingly suicidal, has elements of strategic brilliance.=20

Suddenly, Mr. Dion is not the spineless egghead confounded when = confronted by too many priorities.=20

He's got a defining issue to call his own and seems to have found the = backbone to stand up and defend a position with conviction.

The move also forces Conservatives, who felt they could coast through = the election on snoozy gas-reduction regulations and a technology fund, = to ponder more aggressive carbon-reduction policies.

And, finally, a government with very little revenue room to serve up = election goodies is suddenly facing off against an Official Opposition = flush with tax-grab cash to finance a liberal social agenda, coupled = with tax cuts well beyond anything the Conservatives could afford to = match.=20

Sure, the $15-billion carbon tax grab will cost Canadians $250 on = average -- not to mention higher prices passed on by business -- but if = it can be sold as a pollution charge and rebated in general tax breaks, = well, it's clear the Conservatives have a tax-and-spend target that must = be destroyed.=20

Whatever the reason, the Liberals suddenly sound all bubbly about their = chances of riding a carbon tax to political gain.

I guess you could call them carbonated, which also means they could go = flat eventually.=20

If the Conservatives have their way, this summer will be the = meteorological calm before the fall's political storm with normal = temperatures and storms limited to the odd thunderclap.

But if the carbon tax campaign's weather continues along Monday's lines = -- with Arctic heatwaves, tornados skipping across Southern Ontario, = floods in the Philippines and California burning -- well, it might seem = like even Mother Nature's a Liberal.=20

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http://www.thestar= .com/comment/article/447107

TheStar.com - comment - Not = so crazy economics =

June 22, 2008

In his official biography, = Prime Minister Stephen Harper calls himself an economist, a label that would certainly lend credibility at first blush to his claim last week that = Liberal Leader St=E9phane Dion's proposed carbon tax is "crazy = economics."

But most professional economists would say that a carbon tax is the sanest = way to fight climate change and that it is Harper's assertion that's = crazy.

Don't take our word for it. Ask one of w:st=3D"on">Canada's pre-eminent = economists, Tom Courchene, who is the Jarislowsky-Deutsch Professor of Economics and Financial Policy at Queen's University and senior scholar at the = Institute for Research on Public Policy. Courchene, a former candidate for the = Progressive Conservative party, made his views known in a speech this month, titled = Climate Change, Competitiveness and = Environmental Federalism: The Case for a Carbon = Tax.

Then there is Jack Mintz, the former president of the C.D. Howe Institute, = who currently holds the Palmer Chair in Public Policy at the w:st=3D"on">University of Calgary. As he sees the options for fighting global warming, "carbon = taxation looks the best of the lot." Dion's plan seems to have drawn heavily on a = carbon tax that Mintz designed.

If these high-powered Canadian economists are "crazy," then so = must be Paul Volcker, former chairman of the U.S. Federal Reserve, and Columbia University economics professor Joseph Stiglitz, a Nobel laureate who = also served in Washington as former chair of the President's Council of = Economic Advisers and chief economist of the World Bank – as well as a = majority of economists polled by The Wall = Street Journal.

We could go on and on, but the point has been = made.

Weird weather could help Grits' carbon tax = gamble

Don Martin, National Post = Published: Monday, June 23, 2008

h= ttp://www.nationalpost.com/news/canada/story.html?id=3D608615<= /font>

A Mackenzie Delta town 200 kilometres north of the Arctic Circle was = Canada's hot spot Monday.

style=3D'font-size:12.0pt'>Inuvik reached a perma-defrosting 28C under 24-hour sunshine late Monday afternoon. = Mercifully for its 4,000 hearty residents and the odd polar bear, it was a dry = heat.

That rare northward pump of tropical temperatures may just be a one-day freak of jetstream-oscillation, but it lit up federal Liberal faces as their = party prepares to unleash a dozen MPs to sell the carbon tax, oops, Green = Shift strategy.

The best way to sell Canadians on climate change is to whack them with a = dramatically changing climate, the weirder the better and preferably in = Canada, to give a domestic urgency to the problem.

If Liberal leader St=E9phane Dion could order up a severe windstorm or = funnel cloud to swirl on command as the backdrop for his carbon tax tour this summer, = if only so he could blame Conservative climate change deniers, he'd gladly = risk being swept away.

As the battle for public opinion begins, Liberals were mapping out tours for = their key sales force -- MPs Bob Rae, Martha Hall Findlay, David McGuinty and = Michael Ignatieff being the A team, a designation that had a few noses out of = joint in the caucus.

Mr. Dion is committed to dozens of days on the road, putting his leadership to = the test in big and small events across the country including, apparently, = oilpatch central in Calgary where rotten tomatoes will be seized at the door.

The Conservatives, in turn, are taking a wait-and-see position, content to = fight the battle in tax-mocking press releases without deploying snipers for = an organized assault or accepting Mr. Dion's challenge to a debate with = Stephen Harper.

The uncharacteristic blustery reaction by the Prime Minister -- calling the = plan "crazy" and "insane" and warning it would = "screw everybody across the country" -- is curious.

This economist policy wonk has a deeply analytical brain and picks words carefully for = maximum impact, yet he seemed unable to muster more than elementary taunts as a response.

It could mean, as Environment Minister John Baird told me recently, he just = couldn't believe Mr. Dion would do a U-turn on the carbon tax after campaigning so = vehemently against it only 18 months earlier during the leadership contest. =

As such, it might have looked like gift-wrapping on a majority government for the Conservatives, leaving Mr. Harper giddily = tongue-tied.

But it could also mean the Conservative war room, which thought it had a = choreographed response for every conceivable Liberal action, was caught flat-footed by = Mr. Dion gambling his leadership on a policy that, while seemingly suicidal, = has elements of strategic brilliance.

Suddenly, Mr. Dion is not the spineless egghead confounded when confronted by too = many priorities.

He's got a defining issue to call his own and seems to have found the backbone to = stand up and defend a position with conviction.

The move also forces Conservatives, who felt they could coast through the = election on snoozy gas-reduction regulations and a technology fund, to ponder more aggressive carbon-reduction policies.

And, finally, a government with very little revenue room to serve up election goodies is suddenly facing off against an Official Opposition flush with tax-grab cash to finance a liberal social agenda, coupled with tax cuts = well beyond anything the Conservatives could afford to match. =

Sure, the $15-billion carbon tax grab will cost Canadians $250 on average -- not = to mention higher prices passed on by business -- but if it can be sold as = a pollution charge and rebated in general tax breaks, well, it's clear the Conservatives have a tax-and-spend target that must be destroyed. =

Whatever the reason, the Liberals suddenly sound all bubbly about their chances = of riding a carbon tax to political gain.

I guess you could call them carbonated, which also means they could go flat = eventually.

If the Conservatives have their way, this summer will be the meteorological = calm before the fall's political storm with normal temperatures and storms = limited to the odd thunderclap.

But if the carbon tax campaign's weather continues along Monday's lines -- with = Arctic heatwaves, tornados skipping across Southern Ontario, floods in the = Philippines and California burning -- well, it might seem like even Mother Nature's = a Liberal.

National Post

dmartin@nationalpost.com