Ontario's Financial Accountability Office says scrapping the Cap and Trade Program could cost the province $3 billion over the next four years.
Peter Weltman's report says "This deterioration in the government’s budget balance occurs because the loss of cap and trade revenues will exceed the savings from cancelling the related spending programs."
The cap and trade program began in January of 2017, allowing the province to auction 'emission allowances' to give buyers the right to emit certain levels of greenhouse gas. The money raised by the auction was then used to fund projects in the province.
In July of this year, the Ford government ended the program.
The report also touches on the ongoing battle between the province and the federal government; the Ford government is challenging Ottawa's ability to impose carbon pricing.
The federal government requires all provinces and territories to have a carbon pricing model in place by 2018 or the federal government will put a carbon pricing backstop in place.
In the report, the FAO estimates "a typical Ontario household would pay additional costs of $264 in 2019 under the cancelled cap and trade program, rising to $312 by 2022. Under the federal backstop, a typical Ontario household would pay additional costs of $258 in 2019, rising to $648 in 2022."
To read the full report, go to fao-on.org