Friday, January 31, 2014

For the newspaper article in toronto star "hydro price rebate could frustrate conservation" what is the issue or concern?

The issue or concern in this article is what effect the proposed
10% rebate will have on the consumption of electricity in
Ontario.


According to this article, the Liberals in Ontario have
proposed that there should be a 10% rebate on electrical power.  They want to give the rebate
because the price of electric power has been increasing due to the use of more expensive
electricity (expensive because it comes from "green" sources).


The
problem is that this is likely to make people use more electricity because it will lower the
price of the electricity.  Basic economics tells us that when something costs less, people use
more of it.  If the Liberals' plan is to cut the use of electricity, this seems like the wrong
way to go about it.


So the issue or concern is whether the rebate
will act to increase power consumption at a time when the Liberals are trying to reduce power
consumption.

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