Environment committee  Mr. Chairman, members, and guests, thank you for the opportunity to speak on the economic implications of Bill C-377. My name is Dave Sawyer. I'm an Ottawa-based economist working on issues of climate policy. I am here neither to support nor to contend Bill C-377, but rather to

Environment committee  The government's plan under cap and trade, assuming it's implemented, will place a price on carbon for 50% of Canada's emissions. The question is whether that price is sufficient to hit the longer term, the deeper targets. No, it doesn't look like it is, but then again we are 13

Environment committee  If you want cost-effective reductions, there are certain policy measures you have to implement. In the absence of any clear indication of what those are, I brought some ideas forward.

Environment committee  You're contemplating a range of targets. You're contemplating a range of actions. Whether we need more analysis or not, I don't know. I mean, I can scurry off and bring you piles and piles of data and information, and we can pore over those. I think what I'm hearing are some fun

Environment committee  It was $200.

Environment committee  It was $100 to $200—

Environment committee  —plus or minus 50%, I might add.

Environment committee  You're not looking at doubling the price of electricity—let's start there—or doubling the price of gas. You're not looking at anything outside the fluctuations in the gasoline market, actually. Gasoline, in 2005, fluctuated 50% plus or minus. It fluctuates on a daily basis 15%. S

Environment committee  It depends on the target. It depends on the policy.

Environment committee  For the package that I outlined to you, which would be a fairly efficient package where everyone would be required to make reductions and contributions and you'd recycle revenue and incent renewables, I think the number was 25% on electricity, around 15% for petroleum products, a

Environment committee  I can jump in there. This discussion is surreal. Regardless of the targets—you've got two deep targets—you're talking significant reductions from what we're going to do anyway. That requires a response. If one announces these are the targets, one needs a response to hit the targ

Environment committee  I'm going to jump in. I don't know where that number came from, but it seems massive. We're talking about halving the size of the economy. Energy accounts for 3% to 5% of the energy bills of some of the large final emitters. I don't understand if you doubled that how you'd sudd

Environment committee  Yes, okay, just to throw in the numbers—

Environment committee  That's a very good question. The regional implications will depend on the emission intensity of the electricity. Quebec, then, being a low-emitting generator of electricity, would benefit greatly, one would think, with an increased rise in the price of electricity, because they'

Environment committee  Thank you. I'll be very fast. It's a great question. The aluminum industry is interesting in that there are investments in new high-efficiency facilities like in Kitimat--$2 billion, which is reducing emissions significantly. Those emissions can be used through a trading mechani