Ross McKitrick (College of Management and Economics) - CME to host

Environmental and Economic Consequences of Ontario's Green Energy Act

The Ontario Green Energy and Green Economy Act was passed in May 2009 with the purpose of addressing environmental concerns and promoting economic growth in Ontario.  It provides long-term guarantees of above-market rates for power generated by wind turbine farms, solar panel installations, bio-energy plants and small hydroelectric generators.  My report evaluates the Act by focusing on three questions:  (1) Will it materially impove environmental quality in Ontario? (2) Is it a cost-effective plan for accomplishing its goals? and (3) Will it benefit the economy?  I show that the Act will not yeild any changes to air quality beyond those that would have happened anyway under policy and technology trends established since the 1970; potential emission reductions under the Act cost at least 10 times more than equivalent improvements obtainable through more conventional measures, and the Act will have a negative overall effect on employment and investment in key Ontario economic sectors.

Ross McKitrick is Profesor of Economics and CME Chair in Sustainable Commerce at the University of Guelph, where he specializes in environmental economics.

He has published widely in both economics and physical science journals on pollution policy, climate change, environmental trends and statistical methods in climate analysis.  His book Economic Analysis of Environmental Policy was published by the University of Toronto Press in 2010.

Professor McKitrick has made many invited academic presentations around the world, and has testified before the US Congress and the Canadian Parliamentary Finance and Environment Committees.