The policy brief examines the evidence base on how carbon pricing promotes innovation, and how that innovation in turn can promote productivity. Productivity, of course, is the Holy Grail of Canadian competitiveness. And so Canada’s ability to innovate and to become more productive goes a long way to define our future prosperity. The take-away for policy makers, as Martin makes clear, is that carbon pricing needs to be brought into any policy discussion on productivity in Canada.
SP will continue to develop research and policy work with the Rotman School on this subject. We will also be releasing further policy briefs on subjects ranging from the European experience with Feed-in-Tariffs and lessons for Ontario, and what institutional models exist to manage carbon revenues.