The hardships involved in the transition from a high carbon economy to a low carbon economy can be eased by gradually and sensibly easing our reliance on fossil fuels, so that we don’t continue to build up carbon-dependent infrastructure until we reach a point of crisis. The use of fossil fuels should be reduced through market interventions such as a carbon tax.
There are at least two approaches to achieve this. Supply can be limited directly through quotas. Market mechanisms would then drive the price up and usage down. Alternatively, prices can be raised directly through a carbon tax or other instrument, which would again have the effect of lowering usage.
Post Carbon Toronto does not take a position on which market intervention we should use. We advocate an economy-wide approach.