Canada Caught in a “Staples Trap” and a “Carbon Trap” by Current Pace of Oil Development

The authors of a new report released jointly by the Canadian Centre for Policy Alternatives and the Polaris Institute reject the polarizing framework of “economic interests vs. environmental interests”, or “East vs. West”, and call for a public debate of the social, economic and environmental complexities of Canada’s current “bitumen path”. They argue that Canada’s current “gold rush” approach is creating a double threat to the country: a “staples trap,” which is making our economy less diversified, productive and resilient, and a “carbon trap,” which will make the inevitable day of reckoning for climate adaptation much more expensive and difficult. The report discusses employment impacts, income distribution, international trade, currency effects, and “Dutch Disease” and the Canadian manufacturing sector. An alternate policy approach is recommended, which uses tighter regulation to slow the pace of bitumen extraction and to boost Canadian content in the upstream and downstream supply chains. At the same time, Canada’s economy needs to encourage more balanced, innovative and low-carbon industries.

 

LINK

The Bitumen Cliff: Lessons and Challenges of Bitumen Mega-Developments for Canada’s Economy in an Age of Climate Change by Tony Clarke, Jim Stanford, Diana Gibson, and Brendan Haleyis available at: http://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2013/02/Bitumen%20Cliff.pdf

 

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