September 19, 2016 Leave a comment
With its politically motivated ‘anti-dumping’ laws and tariffs.
Markets, Freedom, and Truth
September 1, 2016 Leave a comment
The Alberta Advantage is gone, says David Yager.
Rising oil prices will help. And they will surely rise. It’s just nobody knows when, why and how much. But even if WTI returned to US$100 a barrel next year Alberta still won’t the same because every other oil producing jurisdiction will enjoy the same benefit but without Alberta’s new tax increases, carbon taxes, investment concerns, government policy uncertainty and the continuing lack of low-cost international market access through additional pipelines.
— Read more at Energy Now —
August 22, 2016 Leave a comment
Today AIMCo announced that it is investing $500 million in an American company called Howard Energy Partners.
AIMCo is an Alberta crown corporation that manages money for government pensions and endowments. They have $90 billion under management. Virtually all of that money is derived from taxation.
What does Howard Energy Partners do?
Howard Energy Partners is an independent midstream energy company, owning and operating natural gas gathering and transportation pipelines, …
Alberta can’t get pipelines, in part because it is viciously opposed by US-backed opponents.
Meanwhile, the US continues building pipelines — lots of pipelines — and even has the pleasure of getting Alberta taxpayer money invested in its own pipeline companies.
June 11, 2016 Leave a comment
The Alberta government, through the CIFFC, contracted 300 of the cheapest firefighters they could possibly get.
Everyone made a big deal out of these cheerful South African firefighters, who sang and danced upon their arrival at the airport. Hooray! How cool is that?
No one has said much about the fact that these firefighters were hired as part of a South African government job creation program called “Working on Fire.” They may have only been hired shortly before their departure for Canada (they arrived on May 29).
Are they real firefighters? We can’t be sure.
Once here, the workers go on strike because of their wages, which are pathetic by the standards of a comfortable Albertan (about $4 an hour, or $50 per day). Now they might all be going home.
Premier Rachel Notley says they contracted to pay the firefighters $170 per day + food and lodgings.
So the South African government is exporting its welfare firefighters and taking $120 per day off the top for each one. They must think the Alberta government is a bunch of suckers.
Notley, who apparently thinks everyone should pay $15 minimum wage except when her government wants cheap African thralls to fight fires, says she is going to fix everything. She claims she will somehow ensure the South African firefighters get paid the appropriate Alberta wage (which is small fortune to them — each day will equal almost a month of the average firefighter wage back in their home country).
Since the firefighters are paid by the South African government, this means the Alberta government will have to give money to the South African government. It’s probably fair to think the South African government is still going to skim “a little” off the top.
The South African government tells us not to worry, because that $4 per hour wage is just an “allowance”, and their firefighters still get regular pay at home (average 2,400 rand, or about $205 per month). The welfare firefighters are double dipping!
We’ve heard of people applying the broken window fallacy to natural disasters: “This wildfire is pretty bad, but fixing things will boost our economy!” Even those people wouldn’t be so daft as to suggest it would boost another country’s economy.
Who would have thought that a wildfire in Fort McMurray would lead to foreign aid for South Africa, letting corrupt bureaucrats enrich themselves at the expense of the Alberta taxpayer?
— Read more at CBC.ca —
June 7, 2016 Leave a comment
Alberta’s NDP government passed its carbon tax law today.
Many agree that it is one of the stupidest taxes ever created, however even many arguments against the tax accept the basic premise that CO2 is a negative externality and “something must be done.”
But what if the premise underlying the tax — not to mention any other “climate change” policy — is wrong?
What if the social cost of carbon is negative — i.e. the net effects of carbon are positive?
A new paper by Dayaratna, McKitrick, and Kreutzer finds reason to believe this is justified by the empirical data:
Substituting an empirical ECS distribution from LC15 yields a mean 2020 SCC of $19.52, a drop of 48%. The same exercise for the FUND model yields a mean SCC estimate of $19.33 based on RB07 and $3.33 based on the LC15 parameters—an 83% decline. Furthermore the probability of a negative SCC (implying CO2 emissions are a positive externality) jumps dramatically using an empirical ECS distribution. Using the FUND model, under the RB07 parameterization at a 3% discount rate there is only about a ten percent chance of a negative SCC through 2050, but using the LC15 distribution, the probability of a negative SCC jumps to about 40%. Remarkably, replacing simulated climate sensitivity values with an empirical distribution calls into question whether CO2 is even a negative externality. The lower SCC values also cluster more closely together across difference discount rates, diminishing the importance of this parameter.
This all makes perfect sense, because there are non-climate effects of CO2 and they are extremely beneficial to the planet (plant growth, crop yield, human well-being). Furthermore, the climate effects of CO2 observed in the real world are far less damaging than what’s been predicted by the models of climate change propagandists — and these too are largely beneficial. On this, see Goklany’s Carbon Dioxide: The Good News, from GWPF.
So using the logic of carbon tax advocates, since carbon provides us with overall benefits, we should subsidize carbon rather than tax it extra.
From the standpoint of economics and ethics, we should neither subsidize carbon nor tax it.
If you have a carbon tax, get rid of it. If you don’t have one but think you need one, forget it.
Carbon taxes are an abomination — they do nothing to improve the environment and exist only to plunder citizens so that politicians, central planners and cronies can enrich themselves.
January 12, 2016 2 Comments
This is worth reading:
An article from summer 2014 that explores how U.S. interests fund anti-oil environmentalist radicals to selectively target Canadian oil production as a roundabout protectionist strategy.
The Tar Sands Campaign pointedly ignores the dozens of tankers bringing foreign oil into the United States and Eastern Canada on a daily basis. Evidently, the only tankers this campaign opposes are those that would break the U.S. market’s monopoly on Canadian oil exports.
But in North Dakota and Texas where oil production is booming, there is no multimillion-dollar campaign to stop or slow down the oil industry. As far as I can tell, the only country where there is a systematic, multimillion-dollar, foreign-funded campaign to choke the oil industry is Canada.
Whether intentional or not, environmental activism is becoming a new form of protectionism. By exaggerating risks and impacts, activists exert such political and social pressure that major infrastructure projects can be stalled or stopped altogether, land-locking Canadian oil and gas and keeping Canada over a barrel.
— Read more at Alberta Oil Magazine —