Carbon tax could pose costly drain on Saskatchewan economy: study
Even the most conservative scenario shows a $50 per tonne tax would reduce provincial GDP by 2.43%.
Oil & Gas
REGINA — A study by the University of Regina says the federal carbon tax could potentially reduce Saskatchewan’s gross domestic product by almost $16 billion between 2019 and the end of 2030.
The study says even the most conservative scenario shows a carbon tax of $50 per tonne would reduce provincial GDP by 2.43%, or $1.8 billion annually.
The study was done by the university’s Institute for Energy, Environment and Sustainable Communities in conjunction with the provincial government.
The province says in a statement that the analysis shows the tax would only reduce greenhouse gas emissions by less than one megatonne, or about 1.25 per cent of Saskatchewan’s total GHG emissions.
It also says in addition to the effects on the provincial and national GDP, research done at the University of Calgary shows a federal carbon tax will cost an average Saskatchewan household more than $1,000 per year.
In April, Premier Scott Moe asked the Saskatchewan Court of Appeal to rule on whether imposing a carbon tax on his province would be unconstitutional.
“GDP reductions in the billions translate to less competitive industries in Saskatchewan and fewer jobs across the province,” Environment Minister Dustin Duncan said in the statement. “This is exactly why our government has never supported the tax and is challenging it in court.”
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Received Id 20180627B8529B on Jun 27 2018 13:14