Fraser Institute News Release: Federal government’s emission-reduction plan will cost Canadian workers $6,700 annually by 2030—while failing to meet government’s emission-reduction target

/EIN News/ -- VANCOUVER, British Columbia, July 18, 2024 (GLOBE NEWSWIRE) -- The federal government’s plan to reduce greenhouse gas emissions will impose significant costs on Canadians—while also failing to meet the government’s own emission-reduction target, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“The government’s plan will significantly hurt Canada’s economy and cost workers money and jobs,” said Ross McKitrick, professor of economics at the University of Guelph, senior fellow at the Fraser Institute and author of The Economic Impact and GHG Effects of the Federal Government’s Emissions Reduction Plan through 2030.

The government wants to reduce greenhouse gas (GHG) emissions to 40 per cent below 2005 levels by 2030. To meet this target, the government has enacted a series of policies including the federal carbon tax, clean fuel standards and various other GHG-related regulations such as energy efficiency requirements for buildings, fertilizer restrictions on farms, and electric vehicle mandates.

The study finds that these combined policies will only reduce GHG emissions by an estimated 57 per cent of the government’s 2030 emission-reduction target.

And crucially, by 2030 these policies will:

• reduce Canada’s GDP by 6.2 per cent
• cost $6,700 per worker annually
• reduce employment in Canada by 164,000 jobs
  

“This poorly-designed plan, which will worsen the current downward trends in productivity and income, will reduce emissions but at a cost many times higher than the government’s estimated benefits,” McKitrick said.

MEDIA CONTACT:
Ross McKitrick, Senior Fellow, Fraser Institute

To arrange media interviews or for more information, please contact:
Bryn Weese, Director of Communications, 604-688-0221 ext. 589,
bryn.weese@fraserinstitute.org

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org