By The Canadian Press

Province expects short-term GDP decline from carbon plan

Nov 1, 2016 | 8:19 AM

EDMONTON – The Alberta government says its carbon plan will shrink the GDP in the short-term, but the province expects long-term growth.

Environment Minister Shannon Phillips says estimates the government released yesterday are preliminary and don’t take into account the expected growth of a diversified energy industry.

The province believes the economic impact of the plan will be 0.3 or 0.4 per cent of G-D-P by the year 2022, which translates into slower growth of .05 per cent per year during that time.

It also estimates that getting a pipeline to tidewater, which would give Alberta a better price for its oil, would more than offset the input costs on the carbon plan.

But Opposition critic Don MacIntyre of the Wildrose Party says the outlook may be worse because it doesn’t factor in the province’s plan to pay compensation for shutting down coal.

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

The government has already passed legislation to implement a broad-based carbon tax starting January 1.

The tax on heating bills and gas at the pumps is expected to bring in 3-billion dollars, which will be reinvested into green initiatives like rapid transit.