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Achieving Sustainability of the Energy Sector in Canada

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  • Annabelle Mourougane

    (OECD)

Abstract

Energy represents a major sustainable-development challenge for Canada. In the short term, labour shortages and infrastructure bottlenecks are likely to hinder energy developments and need to be addressed. In addition, provincial fiscal management could be improved by adopting prudent allocation and withdrawal rules of revenues from non-renewable resources to and from a long-term fund. Eventually the main challenge will be to curb greenhouse gas emissions (GHGs), despite the rapid expansion of high emitting sectors. The effectiveness of environmental policies could be enhanced by better federal-provincial coordination. Efforts should be concentrated on designing and implementing an emissions-trading scheme compatible with corresponding systems abroad. Finally, effective and efficient systems of regulation and taxation are essential to facilitate the timely realisation of energy supply plans. Maintenir la viabilité du secteur de l'énergie au Canada L’énergie représente pour le Canada un défi majeur en termes de développement durable. Dans l’immédiat, il faut remédier aux pénuries de main-d’oeuvre et d’infrastructure qui risquent d’entraver la réalisation des projets énergétiques. En outre, on pourrait améliorer la gestion budgétaire provinciale en adoptant des règles prudentes d’allocation et de retrait pour les recettes de ressources non renouvelables affectées à un fonds à long terme. En définitive, le principal défi consistera à réduire les émissions de gaz à effet de serre (GES), en dépit de l’expansion rapide des secteurs gros émetteurs. L’efficacité des politiques environnementales pourrait être renforcée par une meilleure coordination entre l’administration fédérale et les administrations provinciales. Les efforts devraient se focaliser sur la conception et la mise au point d’un système d’échange de droits d’émission compatible avec les mécanismes similaires à l’étranger. Enfin, des systèmes de réglementation et d’imposition efficaces et efficients sont indispensables pour faciliter la réalisation en temps voulu des plans d’approvisionnement en énergie.

Suggested Citation

  • Annabelle Mourougane, 2008. "Achieving Sustainability of the Energy Sector in Canada," OECD Economics Department Working Papers 618, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:618-en
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    File URL: http://dx.doi.org/10.1787/241263284264
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    More about this item

    Keywords

    bio-carburants; biofuels; Canada; Canada; changement climatique; climate change; energy; environment; environnement; GHG emissions; oil sands; sables bitumineux; émissions de gaz à effet de serre (GES); énergie;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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