Answer
The impact on increasing cost to fuel on industries will impact several industries such as the agriculture industry, fishing industry, tourism industry, and forestry industry. Firstly, an increase in fuel costs will affect prices in the transport industry, whether by air, water or land. Secondly, rising prices may discourage foreigners or tourists from visiting. An increase in fuel cost will lead to currency fluctuations, discouraging visitors. Thirdly, fisheries consume a lot of fuel in their productions therefore, an increase in costs on fuel will affect their production. Lastly, the high carbon costs involved in the fertilizer production and the shipping will be imposed on farmers thus driving their costs up considerably. This will generally affect the agriculture and forestry industries.
Explanation
According to Doelle, (2018) Nova Scotia’s new program is set to reduce greenhouse gas emissions as well as keeping the carbon pricing cost low for the Nova Scotians. Carbon pricing involves polluters paying for the respective gas emissions they are responsible for. Therefore, placing a price on carbon will lead to an increase in the cost of things like fuel and electricity. This will ultimately bring an impact on several industries.
The expenditure of marine fuel represents fishing operational costs. Fishing is therefore very sensitive to the fuel cost variations. Imposing fuel tax will greatly affect fishing activities by increasing costs.
Fertilizer production, shipping, and equipment fuel are always carbon-intensive to produce and are also very expensive. Farmers will be required to pay high costs of the carbon tax, which leads to high costs of farming.
Such tax will also affect the elderly as well as the middle- and low-income households (Dobson et al. 2019). While rebates may be seen as an equitable solution to the problem, the refunds are based on the family size and not consumption. Also, the rebates are given once a year, which forces the poor income households to incur the additional costs of carbon price on fuel and energy products.