In BC, the year before carbon tax (2007), roughly 4

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4. Strictly no self promotional threads. R/investing does not endorse any recommendation or opinion made by any member, nor do any users or moderators of r/investing advocate the purchase or sale of any security or investment. That's not what activists and the government would want, is it?In practical terms, let's say the substitution effect made consumer X stop consuming 10 litres of gas a month. However, the rebate he gets in the mail will allow him to buy 13 litres because he is now richer on the margin. The net effect is a 3 litre increase in consumption.There is evidence of this already.In BC, the year before carbon tax (2007), roughly 4.5B litres of gasoline were bought.

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