A Distributional Analysis of the Clean Fuel Regulations
This report provides a distributional analysis of the Clean Fuel Regulations that will require reductions in the carbon intensity of gasoline and diesel used in Canada.
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Since lower income households generally spend a larger share of their income on transportation and other energy-intensive goods and services compared to higher income households, on average the Clean Fuel Regulations will have a greater impact on these households.
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At the provincial level, households in Saskatchewan, Alberta, and Newfoundland and Labrador will have the highest cost, which reflects the higher fossil fuel intensity of their economies. In contrast, the cost will be lowest in British Columbia due, in part, to revenues generated from existing provincial regulations.
Parliamentary Budget Officer