Sustainable Prosperity, a research and policy network based at the University of Ottawa, released a policy brief in April discussing the domestic content requirements for renewable energy manufacturing in Canada. The policy brief focused on the question of whether domestic
content requirements are effective at increasing ‘green’ employment. The brief looks at various policies in effect in Canada (namely, Quebec and Ontario) and internationally, as well as international trade agreements relevant to domestic content requirements. At least in the short-run, domestic content requirements are likely to increase the cost of renewable energy generating equipment, and therefore also the developer’s cost of generating renewable energy. Depending on the type of renewable energy support policy with which the domestic content requirement is linked, this may have the effect of increasing consumers’ electricity prices, or reducing the number of renewable energy facilities built. In the last case, it is possible that the reduced renewable energy output leads to overall reductions in employment in renewable energy generation and manufacturing.
Sustainable Prosperity news release with link to policy brief: