Environmental politics in Canada

¶ … Canada

ENVIRONMENTAL POLICIES & POLITICS IN CANADA

ARGUMENTATIVE ESSAY

The objective of this research is to answer the question of: "What kind of impact does globalization have on Canadian policies concerning air pollution, specifically concerning motor vehicle air pollution?

THE ARGUMENT PRESENTED IN THIS WORK

The argument presented in this work is that Canada's tendency to follow the policy of the United States is likely to result in Canada having the same critical problem of vehicle emissions that the United States has witnessed due to U.S. policy and further that the AirCare emissions program mandated in Canada have fallen short of the objective.

Stated in the work entitled: "Planning for Sustainability" is that: "The transportation sector component of the Government of Canada's Action Plan 2000 on Climate Change is based on five elements:

"Fuel efficiency - launch negotiations to achieve new vehicle fuel efficiency targets by 2010;

New fuels - increase the supply and use of ethanol produced from biomass such as plant fibre, corn, and other grains;

3) Fuel cell vehicles -- develop refueling infrastructure for fuel-cell vehicles that emit low or zero emissions;

4) Freight transportation -- encourage efficiencies and technologies in the aviation, rail, marine, and trucking industries; and 5) Urban transportation -- demonstrate the best urban transportation technologies and strategies to reduce greenhouse gas emissions." (Planning for Sustainability, 2000)

Stated as well is the FCM is at the municipal level has made a commitment to:

1) Adopt policies that favor public transit over private automobiles;

2) Review their transportation policies with a view to shifting to environmentally friendly modes of transportation;

3) Ensure that infrastructure required to support alternate modes of transportation, such as walking and cycling, is adequate." (Planning for Sustainability, 2000)

Sustainable transportation in Canada is being overseen by the Metropolitan Transportation Agency, created by the province of Quebec in 1996 which is a provincial agency that coordinates the planning and funding of public transportation in the Montreal region. The agency receives revenue from a dedicated gasoline tax of 1.5 cents per litre collected within the region and a vehicle license surcharge of $30 per vehicle in the region." (Paraphrased) The province of Alberta approved the funding of transportation capital in Calgary and Edmonton in 1999 that provisions of the funding of 5 cents per liter of fuels taxes that are collected in those regions. It is stated that: "Calgary and Edmonton have integrated governance structures that allow them to plan and implement sustainable transportation policies on a comprehensive basis." (Ibid)

Additionally stated is that: "In 1999, the Greater Vancouver Regional District (GVRD) and the Province of British Columbia created the Greater Vancouver Transportation Authority (TransLink) to provide transit, funding and coordination of major roads, transportation demand management, and the motor vehicle emission testing system known locally as AirCare. TransLink has access to a number of transportation-related revenue sources, including fares and a share of the existing provincial fuel tax (initially 8 cents per litre and rising to 10 cents per litre by 2005)." (Ibid)

The article relates that in Canada exists what is referred to as the federal "Auto-$mart Program" which gives helpful tips on."..buying, driving, and maintaining..." vehicles to the motorists in Canada which is geared toward the reduction of fuel consumptions and greenhouse gas emissions as well as promoting.".. energy-efficient practices through publications, events, and joint projects, as well as a kit for student drivers available to driving instructors across Canada." (Ibid) In 1986 the federal department of the Canadian environment."..initiated a vehicle emissions inspection program..." And has also."..organized voluntary vehicle emissions clinics in conjunction with various regional organizations in both the public and private sectors." (Ibid) Additionally, clean driving programs are operated in many of the Canadian provinces which is stated to have averaged in its first year."...fuel savings equal to more than 120,000 fill-ups for a midsize car, resulting in an estimated 6.7% reduction in the emission of smog-causing pollutants." (Ibid)

However, it is stated in the work of Robert Paehlke entitled: "Environmentalism in One Country: Canadian Environmental Policy in an Era of Globalization" that: "In sharp contrast with its international reputation and self-image as a leading national advocate of environmental protection initiatives, Canada has, in the 1990s, reduced its environmental expenditures and initiatives. The most dramatic and visible retreat has been in terms of expenditures, especially at the federal level and in Ontario, the largest and most industrialized province. In addition, again especially in Ontario, following the North American Free Trade Agreement (NAFTA) and the provincial election of 1995, environmental protection has been explicitly and openly curtailed. Possible explanations for the decline of environmental protection in Canada include: a) the effects of globalization on a trade-oriented middle power, b) counterwaves of environmental and economic concern among the public, and c) excessive decentralization of political authority with regard to environmental protection." (Paehlke, 2000)

I. THE UNITED STATES AND CANADIAN ENVIRONMENTAL POLICY

In a June 2, 2006 report entitled: Canada Pays Environmentally for U.S. Oil Thirst" published in the Seattle Times stated is that:

Huge mines here turning tarry sand into cash for Canada and oil for the United States are taking an unexpectedly high environmental toll, sucking water from rivers and natural gas from wells and producing large amounts of gases linked to global warming. The digging has proliferated at gold-rush speed, spurred by high oil prices, new technology and an unquenched U.S. thirst for the fuel. The expansion has presented ecological problems that experts thought they would have decades to resolve. "The river used to be blue. Now it's brown. Nobody can fish or drink from it. The air is bad. This has all happened so fast," said Elsie Fabian, 63, an elder in a native Indian community along the Athabasca River, a wide, meandering waterway once plied by fur traders. "It's terrible. We're surrounded by the mines." (Seattle Times, 2 June 2006)

Stated online the Environment Canada website in the work entitled: "CCME Task Force on Cleaner Vehicles, Engines and Fuels" is the fact that: "The Canadian and U.S. auto industry is fully integrated. While the Canadian market represents only 8% of total new vehicle sales, Canadian automotive production plays a major role in North American production. Designing a specific vehicle for Canada to meet a distinct set of Canadian emission requirements would be inefficient from a manufacturing point-of-view, while at the same time increasing costs to the consumer. These considerations strongly argue for the continuation of harmonizing Canadian vehicle emissions standards with those in the U.S. "(2005)

II. PROBLEMS WITH CANADIAN POLICY RELATED TO CARBON EMISSIONS

In the work of Macdonald (1994) entitled: "Green Taxation and Environmental Policies" it is stated that: "The most politically contentious proposal in Canada for use of the tax system to achieve environmental objectives is the call by environmentalists concerned about global warming for a "carbon tax" - a tax on fuel which increases with the relative carbon content of the fuel, thus encouraging a shift to fuels which emit less carbon dioxide when burnt. Discussion of the carbon tax proposal has brought to the fore one of the primary problems with the use of tax as a policy instrument - the fear that deficit-laden governments will be more interested in the revenue-generating potential of a given green tax than in its ability to modify environmentally destructive behaviour, thus limiting its usefulness as a policy instrument. Western Canada, still smarting from the perceived injustice of the National Energy Program, has decried the carbon tax as a "tax grab" - leading Prime Minister Chretien to tell a Calgary audience last summer: "Relax, relax. It's not on the table, and it will not be on the table." (5) [Quoted in Terence Corcoran, "Goodbye carbon tax, hello sanity," The Globe and Mail Report on Business, June 1, 1994.]

In a report entitled: "Oilsands Sector Shudders Under Growing Cost and Environmental Pressures" it is stated that the northern Alberta oilsands."..face runaway costs, unbridled development and mounting environmental concerns. But with oil prices hitting new record highs about U.S.$75 per barrel last week amidst mounting political troubles in some of the world's largest oil producing regions, frenzied expansion in the oilsands could potentially continue." (Stephenson, 2006) However the costs were not the only listed concern in relation to the oilsands as stated was: "Environmental concerns also hit the headlines, with former U.S. presidential candidate Al Gore saying oilsands production was a huge waste of natural gas and a major environmental mess. And they have to tear up four tonnes of landscape, all for one barrel of oil," Gore said in the latest issue of Rolling Stone. It is truly nuts. But you know, junkies find veins in their toes. It seems reasonable, to them, because they've lost sight of the rest of their lives. Alberta Premier Ralph Klein retaliated, saying: "I don't know what he proposes the world run on, maybe hot air." Late last week, the Syncrude joint venture, which is the largest oilsands development in the world, announced plans to re-start its latest C$8.4-billion expansion after it was shut down in May by the province's environment ministry due to urine-like smells wafting in to neighbouring communities from the company's new technology." (Stephenson, 2006)

III. ENVIRONMENTAL POLICY REVIEW

In the work of Ross McKitrick entitled: "Towards the Use of Emission Taxes in Canada" a paper presented to the Finance Committee Round Table on Green Taxes in Ottawa, Canada on May 31, 2001, it is stated that in the presentation of the paper covered are:."..three topics: the context (international and domestic) for environmental policy in Canada, the basic principles of pollution tax design, and the priority I would suggest for proceeding with this policy instrument." (McKitrick, 2001)

McKitrick states that "the theory of optimal environmental taxation was worked out by Agnar Sandmo in an article in the Swedish Journal of Economics in 1975. Some points that have emerged from Sandmo's work are the following:

There is an "optimal" level of taxation on commodities, including those which generate pollution: The optimal level of taxation is determined by the government's overall revenue needs, the market characteristics of each commodity, and the externalities generated by the commodity. The observation that a commodity generates pollution only justifies an additional "green" tax if the current tax rate is below the optimum."

The optimal tax rate is the sum of the revenue-raising portion and an extra charge associated with Marginal Damages.: "Marginal Damages" represents the total amount that people who are fully-informed about the effects of the pollution would be willing to pay to reduce emissions by one unit, if they had the option to go into a market and buy such emission reductions."

Pollution taxes should be considered primarily for their environmental effects, not for their revenue potential: The need to raise revenue does not, on its own, justify introducing "green taxes," nor would the need to reduce the overall tax burden justify a reduction in green taxes."

Pollution tax rates interact with the overall burden of the tax system in a paradoxical way: The heavier the economic burden of the general tax system, the lower pollution taxes should be. Likewise, the less the overall burden of the tax system, the greater the rate at which pollution should be taxed."

The key step in implementing emission charges in a systematic way is to obtain estimates of Marginal Damages: Without these you are merely playing guessing games with environmental policy. Marginal damages estimation is common in the U.S., and some of the leading experts in the field in North America are Canadians." (McKitrick, 2001)

McKitrick also states: "Our urban areas have continuing air quality issues due to the rapid rise in motor vehicle use and the preference for larger SUV-type vehicles. Some commonly-heard suggestions are not useful in this regard: (1) Ontario's "Drive-Clean" emission testing program ("Air Care" in BC) costs a lot and has no measurable benefits. Few vehicles are affected, the tune-ups are minimal and have temporary effect, the program does not affect one's choice of vehicle at the time of purchase nor does it influence the propensity to drive rather than walk or take public transit; (2) Taxes on new "gas guzzlers" do not induce a shift in buyer preference towards new compact cars. They induce a shift towards used gas guzzlers; and (3) Costly emission technology requirements on new vehicles reduce the relative cost of used vehicles and encourage people to keep older vehicles on the road longer. Since older vehicles are "dirtier" these effects undermine the intent of the policy." (2001)

The following chart labeled Figure 1 displays the increase of emissions along with increase in economic growth witnessed in the United States Air Pollution Emissions during the period of 1947 to 1997 of which McKitrick speaks:

Comparison over Time of U.S. Air Pollution Emissions vs. Economic Growth during the period of 1947-1997.

All values indexed to start at 1947=100

Source: McKitrick (2001)

Stated in the executive summary of the document entitled: "Vehicle Emissions Testing: AirCare, Drive Clean and the Potential of Inspection and Maintenance Programs in Canada" and published in the Critical Issues Bulletin in September, 1998 is stated that: "I/M programs were developed during the 1970s in the United States, where government regulations imposing I/M programs spawned a billion-dollar vehicle-testing and consulting industry. In spite of the fact that in the United States, I/M programs have never been shown to provide anywhere near the benefits its supporters promised, the programs continue to be very popular with industry, government bureaucrats, and non-profit organizations." (Coninx, 1998)

Coninx states as well that: "program in Canada. AirCare administration is now in the process of designing AirCare II to replace the original Air-Care program when the testing contract expires in 1999. Although I/M programs fall within provincial jurisdiction, Environment Canada has been promoting I/M for 10 years and has developed an I/M Code of Practice through the Canadian Council of Ministers of the Environment (CCME). Ontario had originally announced that it would introduce its first I/M program during 1998, but the launch of the program has since been postponed. The fact that I/M is popular with governments and has powerful friends in the private sector, and that it is paid for (and usually tolerated by) individual citizens has allowed it to escape both organized opposition and the scrutiny appropriate for government programs. Questioning I/M programs may incorrectly be considered tantamount to questioning the value of cleaner air." (1998)

The following table labeled Figure 2 displays the costs for AirCare to consumers in the Vancouver area between the years of 1993 and 1997.

Cost of AirCare to Consumers in the Vancouver Area (1993-1997)

Source: Coninx (1998)

Implementation of I/M program in the country of Canada was based on the."..alleged need to reduce urban ground-level ozone which is a major component of photochemical smog. Ozone is produced when VOCs mix with NOx, to build up over a period of days. Moving air masses can transport ozone or its precursors from one region to another. In southern Ontario, for example, over one-half of the ozone or ozone precursors originate in the United States (CCME 1997: 258; as cited by Coninx, 1998)

It is revealed that an American consulting firm by the name of 'Radian' a firm that specializes in I/M programs was hired for the purpose of auditing the AirCare program in their third year of operation and that Radian produced."..a glowing report which was released to the public in April 1994 (Weyn and Klausmeier, 1994) Even though AirCare had shortened the test procedure and identified less than one-half the expected number of vehicles having excess emissions, and though 18% of the identified vehicles could not be sufficiently repaired to pass another test and had to be issued waivers, 18 the "audit" still claimed that AirCare was close to achieving the targets that it had been designed to achieve; the NOx reduction target had been conveniently reduced from its original 20% to 3% for the audit. The conclusions in the Radian audit are based on test scores of only 79 vehicles. No confidence intervals or other indications of statistical significance were given for any of the results. Emission reductions were calculated using U.S. EPA's unproved and controversial MOBILE 5A computer model. This model so greatly overestimated the poor condition of vehicles in British Columbia that the vehicle emissions predicted by the model after the I/M testing and repairs had been performed were greater than the actual emissions from vehicles before they took part in the program (Weyn and Klausmeier 1994: 2-10; as cited by Coninx, 1998