Canada heading for 'bitumen cliff'

A new study published by the CCPA and the Polaris Institute shows how the failure to carefully regulate the bitumen industry is putting Canada on a dangerous economic and environmental trajectory.

The study, by Tony Clarke, Jim Stanford, Diana Gibson, and Brendan Haley, 
shows that the current bitumen path is creating the double threat: a “staples trap,” whereby the faster Canada exports its bitumen, the less diversified, productive and resilient the economy becomes;” and a “carbon trap,” which locks Canada into an carbon dependent development path, making the costs of future climate adaptation much more difficult.

The Bitumen Cliff: Lessons and Challenges of Bitumen Mega-Developments for Canada's Economy in an Age of Climate Change presents a wealth of empirical data indicating the negative side effects of unregulated bitumen developments for Canada’s trade, exchange rate, productivity, and income distribution performance and proposes a two-track approach to steer away from the “bitumen cliff."

Click here to download the full report. You can also read more in the following commentaries:

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