There’s a difficulty with most so-called economic behaviour in the world: it pays attention only to the first price tag, and rarely to the second. The first price tag is the sticker at the store. The second price tag is the cost of operation and maintenance. Then, there’s the third — the price you don’t pay, but someone else does. It’s called an externality, and there’s a lot of that going on, and it usually falls to government to pay it, or no one at all. Truly economic behaviour would consider all prices, including these externalities. For these, a mitigation fee could be paid.

In Quebec, we pay the Electronic Waste fee when we buy electronics. We also pay an environmental tax when we buy tires – at $3 per tire. Then, when you want to scrap your tires, you can bring them to any garage that does tire service, no questions asked. Many go to developing countries for a second life. Those that aren’t fit for reuse go to a recycling plant. They used to be stockpiled — a good practice where recycling technology hasn’t kept pace with the supply — but then, in the early 1990’s, someone accidentally set one ablaze both in Quebec and in Ontario. That kicked recycling into high gear! Quebec even announced last summer (2012) that the last stockpiled tires from its various dumps have now all been recycled.

These price tags also exist when you buy a home. After the purchase price, you first have to pay the excise/land transfer/”bienvenue” tax (and the seller has other closing/selling costs to pay at end of ownership). You have the necessary mortgage interest. After these, the cost of upkeep: condo fees, annual taxes, house insurance. Then your energy and other utility (e.g. water) bills. Lastly, and inescapably, repairs and renovations.

When it comes to energy, as a primary producing nation, Canadians often pay too little, and this bears out in “luxury” design and build choices. We don’t pay much attention as to how we use energy, but of course we always complain when the rates go up, or if there’s a sudden spike in use or price that we didn’t expect.