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Tax Breaks & Subsidies and Canada
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Creating a welfare-dependent industry in the province may benefit the backers of these projects, but the potential cost to taxpayers is huge, and the outlook for an unsubsidized industry is grim. ...The wind power industry in Canada gets a federal government subsidy of $10 per megawatt hour.
But B.C. consumers can expect to dig deeper.
The cost of electricity from wind power is about $71 per megawatt hour. That compares to about $48 for natural gas and $25 for electricity produced from B.C.'s heritage hydro assets.
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Impact on Economy]
In 1996, Denmark went on to hit industrial producers with a $15 per tonne carbon tax, initially neutralized by cuts in payroll taxes.
What happened?
By 1998, manufacturers started shutting their doors due to high energy prices, and overall Danish carbon tax revenues started to fall along with manufacturing jobs.
At the same time, the cost of government programs rose significantly.
The government's solution incredibly was to - wait for it - subsidize electricity to select manufacturers and raise income taxes by lowering the income threshold on the country's top marginal rate.
By 2001, with economic growth hovering at one- seventh-of-one-percent, Danes making over CAD$50,000 paid 59 per cent of their income in taxes and had to cope with record electricity prices. The entire debacle led to a change of government that year, with the incoming government promising a tax freeze, followed by a tax reduction - including those taxes on energy.
Also filed under [
Europe]
Wind power is not the answer to global warming. Do we have alternatives? We certainly do have alternatives to windmills but they would disrupt the lifestyle of electors and consumers. In Paris, an article in the September 2007 issue of the medical journal, The Lancet, shows with supporting calculations that it would be better to minimize human consumption of meat, for 80% of agriculturally produced methane comes from farm animals. Wind turbines won't even alter the greenhouse gas equation but by a mere .03%, as mentioned above. The way to reduce CO2 emissions and other greenhouse gases is to use less energy. Governments must massively invest in energy conservation measures rather than in these wind machines. According to another research, if every English household switched for one single low energy light bulb, a fossil fuel-burning electrical plant could be shut down!
Wind power would only be interesting if energy produced can be stored. It has been proposed to fill reservoirs of large hydroelectric dams, for example. An Australian method has just offered in September 2007 to store electricity in liquid accumulators. Quebec would thus be able to utilize wind energy because the major part of our electricity comes from hydroelectric dams, which is not the case for Ontario or New York where, as almost everywhere else in the world, wind power must be backed up by carbon-based generating stations.
By paying too much, the Ontario government is encouraging inefficient power production in a way that will give renewable energy a black eye with consumers.
Also filed under [
Energy Policy]