It’s a widely debated topic – what impact will rising carbon taxes have on the prices we pay at the grocery store.
The tax went to $80 per metric tonne from $65 on Monday, resulting in an increase of close to four cents for gas and nearly five cents for diesel.
Many consumers believe the carbon tax is driving up the price of groceries. But is there a clear link between carbon pricing and the cost of food?
Dr. Sylvain Charlebois, senior director of the Agri-food Analytics Lab and a professor in food distribution and policy at Dalhousie University, says many factors, including weather, affect the price of food. He’s concerned that the tax will discourage food companies from doing business in Canada, eventually resulting in less competition.
As we march toward $170 per tonne by 2030, he believes a lot of companies will look to the U-S where they can make more money. That would have an impact on our food security and lead to higher prices.