The 2016 outlook for environmental optimists might be green, but for those footing the bill for ill-considered political action plans it will be shades of grey all the way.
For example, 2015 year-end interviews revealed the leaders of B.C.’s two main political parties at odds over how revenue from an increase in the province’s carbon tax might be allocated. But neither appeared much concerned about the business implications of raising that tax for the major industries on the hook for the lion’s share of any increase, and neither would those implications likely wring much sympathy from green advocates.
However, they might be more sympathetic if those major carbon taxpayers begin to wilt under the weight of increased taxation and its impact on their long-term viability. Team Green’s push to be ahead of the curve in cutting carbon emissions from industry and other sources could significantly erode the province’s standard of living if B.C. wins that race but loses its ability to compete in the marketplace. That will leave the province without the financial resources to deliver on ambitious green initiatives.
As chronicled in a recent Business in Vancouver story on the potential fallout from increasing the carbon tax, the competitive edge of B.C.’s industrial and extractive resource sectors would be seriously compromised were the province to raise its carbon tax before competing jurisdictions institute a similar levy.
Closer to home, the City of Vancouver’s plan to tighten environmental requirements for homes in the municipality will increase housing costs in a region where expensive real estate, skyrocketing property assessments and the cost of living already make it difficult to attract the top executive talent and corporate head offices needed to develop local companies into international players.
The environmental lobby might find it distasteful, but the new green economy still needs the old resource economy’s cash flow for B.C. to have any hope of successfully migrating from resource extraction dependence to tech innovation diversity.
