Carbon Pricing Policy and Energy Efficiency in Canadian Provinces: A Policy Brief

This paper examines the effect of carbon pricing on energy consumption which is the main source of CO2 emission to enhance our understanding beyond carbon-pricing effects on households and revenue recycling in the prior research. The study analyses the energy efficiency of Canada using the province-level data between 2000 and 2021, by developing a Stochastic Frontier Analysis (SFA) production model to understand the drivers of energy consumption and then compute the total factor.