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Sask. decision to stop collecting carbon tax has consequences: economics professor [Video]

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Saskatchewan News

As the provincial government boasts its decision to stop collecting carbon tax is the main factor lowering the inflation rate, a Regina economics professor says it’s not that simple.

“That’s only half the picture,” said Brett Dolter, assistant economics professor at the University of Regina. “So much of this ends up being caught up in world events, like what’s going on in the world that’s leading oil prices to go up or down.”

According to a recent report from Statistics Canada, inflation in the province dropped to 1.9 per cent in January compared to 2.7 per cent in December, something the province said was driven by its decision to stop collecting carbon tax.

Dolter said the drop in inflation is only temporary and people have to think through what else that means for the province.

If Saskatchewan is no longer collecting the carbon price, Dolter said there are economic consequences — the province would still …

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