Behavioural economics and the BC carbon tax: unexpected changes in gasoline demand

In this talk, Dr. Schaufele will present the findings of a recent paper on carbon pricing and gasoline demand in British Columbia. The paper examines the effect of BC’s carbon tax on the demand for gasoline in the province, finding that it caused a decline in short-term demand significantly greater than would be expected from a similar increase in the market price of gasoline. Along with calculating the reduction in carbon dioxide emissions attributable to the tax, the paper also discusses potential explanations for the difference in consumer responses to the carbon tax relative to the market-determined price.

The full paper is available here.

Brandon Schaufele is an assistant professor in the department of economics at the University of Ottawa. He is also the research director of both the Institute of the Environment and Sustainable Prosperity, Canada’s leading environmental economics think-tank. Dr. Schaufele received his PhD from the University of Alberta and completed post-doctoral work at the Ivey Business School.

View the live webcast.