On October 11, the government released a report which estimated the impact on Canada's economy of a policy similar to that contained in the draft plan on climate change.
Changes to energy prices resulting from the Kyoto protocol implementation measures would be expected to have very small impact on the overall economy and agriculture, based on the following outcomes from the analysis:
--fuel prices, gasoline and diesel, would not be expected to change;
--electricity prices would be expected to decrease; and
--natural gas prices would be expected to increase, but without significant impact on agriculture sector because of its small share of farm costs and because of the possibility for more energy efficient farming practices and technologies.
As Canada's plan evolves as a result of discussion with the provinces, territories and Canadians, my department will undertake further analysis of the economic impacts and opportunities resulting from action on climate change.
The cost of not implementing Kyoto could be high. The Intergovernmental Panel on Climate Change, IPCC, warns that severe droughts, such as that in southern Canada in 2001, are expected to become more frequent as the climate warms, perhaps doubling in frequency within the next century. Inaction is not an option.