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Global Warming Damages and Canada's Oil Sands

  • Leslie Shiell
  • Suzanne Loney

The social net benefit of energy investments differs from private profitability by the value of environmental damages, among other things. Estimates of damages associated with greenhouse gas emissions are obtained from the literature, ranging from $15 to $64 (C$ 2004) per tonne of carbon. These values are shown to be equivalent to $2 to $8 per barrel of crude oil obtained from Canada's oil sands, based on emissions intensities of Suncor Energy Inc. It is estimated that taking these costs into account would lower the social net benefit of Suncor's oil sands production for 2004­2005 by a central value of 18 percent.

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Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 33 (2007)
Issue (Month): 4 (December)
Pages: 419-440

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Handle: RePEc:cpp:issued:v:33:y:2007:i:4:p:419-440
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