HALIFAX (CP) -- Carbon tax advocates say that by increasing the price of fossil fuels, people would be encouraged to use less.
However, MacDonald said fossil fuels produce 90% of the electricity in the province and account for 60% of its home heating.
He said the higher cost would only drive up the cost of everything else that depends on fuel for production or delivery.
"We, along with Alberta, are going to be most impacted," said MacDonald. "This so-called solution for the environment is no solution at all for Nova Scotia."
The premier said the province intends to meet its stated target of a greenhouse gas reduction of 10% below 1990 levels by 2020.
"But we don't believe taxing people is the way to do it," he said.
Nova Scotia's climate action plan is expected to be released in the fall.
Although it's not known what regime the province will adopt to cut greenhouse gases, the premier has already said the plan won't include a carbon tax and likely won't include a cap-and-trade system either.
Meanwhile, the Tories have put what they call a carbon tax estimator on their website.
By plugging in oil bill totals, it purports to show homeowners how much more they will be paying in taxes if the Liberal plan is implemented.
MacDonald denied his increasingly vocal opposition to the so-called Green Shift was part of a strategy to help the federal Conservatives, who could be facing the prospect of a fall election.
"I've indicated to them my displeasure with the thought of a carbon tax and that if they were thinking about it I would fight it tooth and nail," he said. "My interest is the people of Nova Scotia."
Kings-Hants MP Scott Brison wrote a letter to MacDonald on Thursday in which he challenged him to a public debate on the energy issues facing the province.
Calling MacDonald "the leading public face" for Prime Minister Stephen Harper in Nova Scotia, Brison told the premier he would welcome the opportunity "to have an honest debate" with him.
"I am certain that CBC, CTV, talk radio or other media outlets could be approached and would be receptive to hosting such a debate, which I would like to have at the earliest opportunity," Brison said in his letter.
MacDonald wasn't immediately available for comment on Brison's demand.
(c) The Canadian Press 2008