Canada West Foundation
CALGARY, AB – A new discussion paper from the Canada West Foundation outlines the importance of the oil and gas industry to the Canadian economy and asks readers to take this into account when debating how to address greenhouse emissions in Canada.
Look Before You Leap: Oil and Gas, the Western Canadian Economy and National Prosperity argues that the idea that economic pain in one region will not spill over into the rest of the country is naïve. If the oil and gas industry is hamstrung by poorly designed climate policy, the whole country will feel the negative economic effects.
“We are not saying that addressing greenhouse gas emissions is less important than economic considerations,” points out Canada West Foundation CEO Roger Gibbins. “What we are saying is that climate policy should recognize the economic costs that will be incurred if the oil and gas industry is unduly targeted.”
Western Canada's economy is intimately linked to the rest of Canada's economy. At the same time, the oil and gas industry is a key driver of the western economy and a major economic stimulus across Canada.
“Highlighting the economic costs of climate policies that would undercut Canada's oil and gas industry does not resolve the debate,” says the paper's co-author Robert Roach. “But it does clarify the stakes and put pressure on policy-makers to do more than cross their fingers and hope that the economic pain is contained to places like Alberta and Saskatchewan.”
In 2008, the 30.6 per cent of the Canadian population living in the four western provinces accounted for 37.5 per cent of the country's GDP. This over performance has helped keep the national economy growing and Ottawa's coffers full enough to pay for programs like equalization.
The oil and gas sector is far from the only reason for the region's economic success, but it is a key factor. It is estimated that the oil and gas industry will add $3.5 trillion to Canada's GDP over the next 25 years.
The West, however, accounts for over half of Canada's GHG emissions. This raises a fundamental challenge: how do we curb GHG emissions without compromising the national economic benefits and wealth redistribution made possible by the western Canadian economy?
Look Before You Leap does not have the answer, but it ensures that the question gets asked rather than ignored.
Canada West Foundation is the only think tank dedicated to being the objective, non-partisan voice for issues of vital concern to western Canadians. For 40 years, through its research and commentary, the Foundation has contributed to better government decisions and a stronger Canadian economy.
