Given our renewed national interest in pipelines and oil sands mines, consider some strange bedfellows: economists who agree with environmentalists that subsidizing the fossil fuel industry is a bad idea.
Eliminating fossil fuel subsidies would obviously help Canada achieve its emissions-reduction targets. What’s less obvious is how these subsidies undermine our economy, add to the tax burden, and hinder innovation.
In Canada, consistent subsidy has failed to either provide stability or kick-start major innovation when it comes to fossil fuels.