Are you like me, trying to understand the Ontario governments new cap and trade system? I understand the basic concept, however the costs of the program seem a little hidden.
Everyone speaks in terms of cost per tonne of carbon dioxide [CO2] emitted, and the government has not really told us that amount. They have given us a 4.3¢ tax on gasoline and said for natural gas it may add $50-60 to your yearly bill.
So I used my basic chemistry and financial knowledge to try and help even the playing field by giving us what I believe to be the cost per tonne we will be paying Ontario under the current Cap and Trade.
I simply began by trying to determine how much CO2 is produced by both gasoline and natural gas and worked backwards from the pricing that has been issued. The results of my calculations concluded that we will be paying approximately $18.60 per tonne of CO2 in both instances.
Then of course, we must ultimately add HST to that so we are looking at around $21.00 a tonne.
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