Development of Options for A Vehicle Feebate in Canada - Final Report

Description

This consultants' report for the National Round table on the Environment and the Economy was prepared in cooperation with Resources for the Future and DesRosiers Automotive Consulting. In the 2005 Federal Budget, the Government of Canada tasked the National Round Table on the Environment and the Economy (NRTEE) to develop options for a vehicle feebate for Canada. The options were to be revenue neutral, to apply to all light-duty vehicles, and to be flexible to adapt to changing circumstances. The Budget set out A Framework for Evaluation of Environmental Tax Proposals as the basis for evaluating this and future environmental proposals involving the tax system. In response, the NRTEE commissioned this study, whose objectives are to: understand the nature of the motor vehicle market in Canada and trends, including the recent Memorandum of Understanding (MOU) between the industry and the Government on greenhouse gas (GHG) emissions; identify the key feebate options that meet the mandatory parameters identified by the Government; and, assess the options against the criteria established in the Budget 2005 Framework.