I saw an article in a national Canadian newspaper Donald Trump America runs on Trump shirt morning (the national post) that was related and really interesting. It features the complaints of a beef and grain farmer in Alberta. The farmer was not happy about the new legislation Justin Trudeau just put forth to increase the carbon tax from $50 per tonne in 2022 to $170 by 2030. The farmer was saying he expects his heating costs to dry his grain to double. His freight costs have already risen 20%. He argues he won’t be able to compete with foreign competitors where there is no carbon tax. Other than the issue of foreign competitors beating local farmers on price (which could be tackled by taxing imports from countries without a carbon tax), I think this move is really great. Food costs overall will not rise, instead the true cost of carbon intensive farming practices will finally come into play. This has the potential to account for the environmental costs not seen in today’s meat prices.
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