News - 2018
IEESC's research supports energy policy making in Saskatchewan
July 23, 2018
IEESC was contracted by the government to develop a Saskatchewan-specific Computable General Equilibrium Model to simulate a series of direct and indirect socio-economic impacts of a carbon tax. IEESC’s report to the Government of Saskatchewan on Economic Modeling to Support the Development of Climate Change Regulations, an impact analysis of greenhouse gas reduction approaches, was released in June. Key findings predict a reduction of 1.43 per cent to the provincial GDP at a $50-per-tonne carbon tax; without the tax Saskatchewan’s GDP is expected to grow by one per cent each year.
In the SK-CGE model, the energy sector is further disaggregated based on production structure and energy use patterns. It is capable of effectively reflecting the uncertainties and interactions and desired for analyzing the economic impacts of specific climate policies and designing effective greenhouse gas policy frameworks. Based on the SK-CGE model, direct and indirect socio-economic impacts of different energy policies were simulated. The results provided an evidence-based scientific basis for exploring desired policies for managing greenhouse gas emissions in Saskatchewan.
According to Saskatchewan’s Environment Minister Dustin Duncan “This new and more thorough model indicates GDP reductions in the billions, which translates to less competitive industries in Saskatchewan and fewer jobs across the province.”
For more information, visit: http://publications.gov.sk.ca/deplist.cfm?d=66&c=5836
