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The demand for fossil fuels by Ontario's conventional steam power generation sector is examined. It is hypothesised that the enactment of a carbon fee policy will induce a change in the relative prices of the three fuels used in this sector (coal, natural gas and heavy fuel oil). This would lead to substantial interfuel substitution and greenhouse gas abatement. The demand share equations for the three fuels are derived from the translog functional form and set in a simulation model to estimate the value of a carbon fee necessary, to reduce carbon dioxide emissions in compliance with the Kyoto Protocol. Results suggest that a fuel specific carbon fee policy would be successful in achieving the desired emissions reduction at a negligible net cost to society.

The Canadian agricultural sector was recognised as a potential seller of carbon offset credits in the domestic emission trading system. A number of beneficial management practices may reduce GHG emissions while increasing production efficiency and profitability of agricultural activities. A contingent valuation survey was used to estimate the carbon offset price at which feedlot operators in Ontario would adopt two management practices that reduce GHG emissions: adding roasted soybean seeds to a cattle diet and increasing the intensity of feedlot operations. The value elicitation questions to estimate the mean WTA compensation were designed using a multiple bounded discrete choice format developed by Welsh and Poe (1998). / It was estimated that at a carbon offset price of $ 25.14/t CO2 e provided enough incentive for feedlot operators to intensify their operations and a price of $ 109.51/t CO2e to change their feeding strategies. The mean willingness to accept a cost to change a conventional practice to a greenhouse gas emissions reducing practice was estimated to be 62% of the carbon revenue. The regression analysis demonstrated that producers' willingness to accept compensation was influenced by the individual's characteristics, farm structure variables, and practice attributes. Policy makers may use these results in the design of greenhouse gas reduction strategies for the beef sector.

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The Quebec City - Windsor corridor is the busiest and most important trade and transportation corridor in Canada. The transportation sector is the second largest greenhouse gas (GHG) emission category in the country. Governments around the world, including Canada, are considering increased mode share by rail as a way to reduce transportation emissions. To understand whether freight mode shift is a realistic means to reduce transportation emissions, an analytical model is needed that can predict the effect of government policy on mode split. / This thesis provides background on the freight transportation-GHG nexus in Canada and describes the development, implementation, reasoning behind, and results of, a Stated Preference shipper carrier choice survey for the Quebec City - Windsor corridor conducted during the fall of 2005. It then describes how the resulting carrier choice models are used to estimate the potential to displace truck traffic to rail (premium-intermodal) under current conditions, as well as to test the effectiveness of different possible future policy or service offering scenarios. / The results show that premium-intermodal has the potential to capture a substantial share of traffic between the main destinations in the Quebec City - Windsor Corridor. However, its ability to contribute significantly to reducing CO2 emissions is limited. According to the analyses conducted, potential reductions are considered to be in the range of nil to 0.413 Mt---a fraction of what the federal government was hoping to be able to achieve through "further public-private collaboration to promote the use of intermodal freight opportunities and to increase the use of low-emission vehicles and modes" (Government of Canada 2002). / At the same time, these potential reductions are based on a small proportion of total truck-related emissions and a few city-pairs. Extension of the current analysis to more city-pairs separated by longer distances might arrive at different conclusions.

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