Carbon pricing options for Canada

The paper discusses energy links between Canada, the United States, and Mexico and the state of greenhouse gas (GHG) emission-reduction policies. A review of GHG reduction policies reveals fragmented approaches with political stalemates at the national level. Closely integrated North American energy markets are potentially changing in different directions. While Canada is contemplating more diversification of energy trade, the United States is increasingly relying on domestic supply of energy and will soon be a net exporter of energy. The paper argues that carbon pricing needs to