MONTREAL, Nov. 13, 2013 /CNW Telbec/ - In reaction to the recent
publication of a report by the Pembina Institute and Équiterre on the
development of the oilsands and their impact on the Canadian economy,
the Montreal Economic Institute (MEI) reminds us that the green energy
"investments" called for by these organizations are actually expenses,
since the forms of energy in question are not cost-effective.
"The term 'investment' implies a return on the money invested, which is
not the case for most green energy. Subsidies for green energy go to an
industry that in return provides more expensive energy. So both
taxpayers and consumers come out losers on the deal," explains
Jean-François Minardi, public policy analyst at the MEI.
In Quebec, subsidies for wind power have led to annual net losses on the
order of $695 million. The Fraser Institute, for its part, estimates
that Ontario's wind power subsidies generate an annual loss of around
$200 million. What's more, a 2009 Ontario law on green energy resulted
in a $1.1-billion bill according to the province's auditor general. In
Europe, "green solutions" that produce expensive energy are facing
"Canada gets almost no benefit from its green energy expenditures,"
points out Mr. Minardi. "In the short term, current technologies are
simply not up to the challenge of replacing hydrocarbons and other
traditional energy sources for numerous sectors of economic activity."
The policies recommended by ecological groups are mostly solutions for
commercializing costly, inefficient means of producing energy that are
likely to become obsolete with further technological innovations. A
sustainable, long-term transition toward renewable energy will happen
when green energy becomes less expensive than the alternatives.
What the Pembina Institute does not say in its report is that its
proposal would entail costs for everyone. Already, Canadians pay
various fuel taxes as consumers in addition to subsidizing inefficient
energy as taxpayers. The MEI has published several Notes on the
subject, which are available on our site.
The Montreal Economic Institute is an independent, non-partisan,
not-for-profit research and educational organization. Through its
publications and conferences, the MEI stimulates debate on public
policies in Quebec and across Canada by proposing wealth-creating
reforms based on market mechanisms.
SOURCE: Montreal Economic Institute
For further information:
Interview requests: Jasmin Guénette, Vice President, Montreal Economic Institute / Tel.: 514-273-0969 ext. 2231 / Cell.: 514-603-8746 / Email: firstname.lastname@example.org