Government Operations committee  That's a question that's probably worth thinking about, but it's not one that my office has considered, particularly in terms of the costs of climate change that the federal government must assume. I know it's an issue for many institutions in the country and around the world. At this point, I wouldn't say that the work is still in its infancy, because it's more than that, but we're still in the early stages of estimating those costs.

Government Operations committee  We did a report on this in November 2022, if memory serves; I have several documents in front of me. We did an analysis of that and realized, as most observers have, that the fuel tax or the greenhouse gas emissions tax isn't enough to meet or exceed the Paris Agreement targets, as the government committed to in the 2021 budget.

Government Operations committee  You're right, Mr. Chambers, that with a team of 38 we cannot follow every single government initiative. I don't remember off the top of my head how much the government expected to collect on the underused housing tax. I'm looking at my colleagues and they're avoiding eye contact—

Government Operations committee  —which probably means they don't remember either. The numbers you mentioned seem high, as if it costs so much to administer, but how much is assessed is often a number significantly different from what ends up being collected.

Government Operations committee  On what issue? Could you be clear before I agree with something?

Government Operations committee  Climate scientists are almost unanimous in saying that climate change will have impacts on our lives. I'm willing to believe the science on this one, as on many things.

Government Operations committee  If we assume that the impact is 0.15%, this means that inflation is a little higher because of the carbon tax. For example, inflation without the carbon tax will be 2.85%, and with the carbon tax, it will be 3%.

Government Operations committee  Yes. There are two effects to consider. Inflation is an annual phenomenon. We're comparing today's prices to those of a year ago. Prices went up during that year. However, there is also the cumulative effect. For example, if we completely eliminate a tax, we'll also eliminate the effects of previous years.

Government Operations committee  I don't have the answer to that question. I'll admit, it's an interesting one, given what we're hearing these days, but I don't have that answer. I know it's based on census data, but I don't know whether non‑permanent residents are included in the Canada health transfer calculation.

Government Operations committee  Yes, I would be inclined to say that, to some extent.

Government Operations committee  Mr. Sousa, that's a question for policy-makers and legislators.

Government Operations committee  As an economist, I believe that externalities should be internalized, so those who cause negative consequences for society should be the ones who assume these costs, as opposed to pricing—

Government Operations committee  As I said to this committee last week, there is a wide consensus among economists—and I am an economist—that carbon pricing is an effective way of reducing carbon emissions. Any other way of doing it will also have costs. I've been clear about that, and my office has been clear about that.

Government Operations committee  The question is quite valid, but it is something we have not looked at specifically. We have done work on the carbon fuel charge, the carbon tax, but we have not looked in detail at the impact of the fuel charge on food inflation. However, as referred to a couple of times in this committee, the Bank of Canada has looked at the impact of the fuel charge on general inflation and it's 0.15%, if I remember correctly.

Government Operations committee  Inflation as defined by Statistics Canada refers to the price evolution of a basket of goods and services that is representative of what a typical household will buy.