Implementing Carbon Pricing in the NWT

Calculating impacts on households

Search Implementing Carbon Pricing in the NWT

The impacts of the NWT Carbon Tax on households have been estimated using economic data from Statistics Canada. For indirect costs, a range
of estimated impacts have been provided based on the level of reliance on imported goods.

DIRECT COSTS Federal Backstop NWT Approach
(with offsets)
Heating fuels
(diesel, propane, natural gas) 
$435.95 $0.00
Gasoline $223.55 $223.55
Diesel and biodiesel fuels $5.77 $5.77
TOTAL DIRECT COSTS $665.27 $229.32
  Federal Backstop NWT Approach
(with offsets)
INDIRECT COSTS LOW HIGH LOW HIGH
Transportation
 
$54.02 $71.66 $13.39 $26.19
Housing, water, electricity,
gas and other fuels
$32.95 $43.56 $12.51 $20.85
Food, beverage and
accommodation services
$21.49 $29.13 $12.08 $16.37
Food and non-alcoholic
beverages
$18.77 $41.64 $11.41 $23.78
Recreation and culture
 
$11.66 $18.05 $6.42 $10.91
Other goods and services
 
$35.88 $53.28 $20.10 $29.50
TOTAL INDIRECT $174.77 $257.32 $75.91 $127.60
TOTAL COSTS TO
HOUSEHOLDS
BEFORE COLO
$840.04 $922.59 $305.23 $356.92

Total costs for households are the sum of the estimated direct costs (mainly heating fuel and gasoline) and the indirect costs for households
which are carbon tax costs that are expected to be passed on to consumers from businesses passing on the carbon tax.

The Cost of Living Offset (COLO) benefit is intended to offset the impact of the carbon tax and help address overall cost of living. When fully implemented this is expected to provide $260 per person 18 and over and $300 per child. The average per household is estimated to be: $753.20
Offsetting the COLO with the expected costs from the Carbon Tax indicates that the net postive impact on households will be in the range of: $396.28-$447.97