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Tag Archives: Fraser Institute

Economic, social disaster: Wynne government green energy policy

09 Tuesday Feb 2016

Posted by ottawawindconcerns in Renewable energy, Wind power

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Dalton McGuinty, Fraser Institute, Green Energy Act, Kathleen Wynne, Stewart Fast, University of Ottawa, Wind Concerns Ontario, wind farm, wind farm financing, wind farm leases, wind power, Wynne government

Higher electricity bills, manufacturing being driven away, social costs of huge wind power plants

Shoreline Beacon, February 8, 2016

By Jim Merriam

Premier Kathleen Wynne (Antonella Artuso/Toronto Sun)

Photo Toronto Sun

It’s to be hoped the Fraser Institute didn’t spend much money on its recent study of the fiscal performance of Canada’s premiers.

Every resident of Ontario able to sit up and take nourishment — probably including Wiarton Willie last week — has known the study’s conclusion for a long time: Premier Kathleen Wynne is doing a lousy job of managing Ontario’s economy.

Wynne, with the help of her predecessor Dalton McGuinty, has reduced Ontario from a powerhouse to an empty house.

On almost every file Wynne’s government is found wanting if not severely under water, to borrow a phrase from the mortgage industry.

The worst is energy. The cost of power in the province has forced industries to close and some families to choose between heat and groceries.

A columnist in a Toronto newspaper recently suggested the heat-vs.-food statement is an exaggeration. He should spend a few minutes listening to clients at food banks in rural areas. But I digress.

Much of the high cost of power is associated with renewable energy production.

A new study from the University of Ottawa confirms what we’ve been saying all along: Ontario brought in wind energy with a “top-down” style that brushed off the worries of communities where the massive turbines now stand.

Stewart Fast, who headed the study, said, “It was a gold rush, basically.” Since those involved kept details secret to avoid giving their competitors an edge, residents didn’t know what their neighbours were planning.

“That is really the worst way to go about something that you know is going to have a big impact on landscape and people,” he said.

In defence of renewable energy, we keep hearing from our urban cousins how much money farmers are earning by allowing turbines on their land. Although true on the surface, there’s much more to that equation, said Jane Wilson, president of Wind Concerns Ontario.

Just one question is the impact of the presence of a turbine on the farm owner’s financing.

Read the full story here.

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Ontario electricity policies hamper economic growth: Fraser Institute

06 Monday Oct 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 1 Comment

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electricity bills Ontario, Fraser Institute, Ontario, Ontario economy, Robert Lyman, Ross McKitrick

Here a commentary from Ottawa-based energy economist, Robert Lyman:

In May 2014, the Fraser Institute, based in British Columbia, published a report authored by Professor Ross McKitrick and PhD candidate Elmira Aliakbari of the University of Guelph. The report, Energy Abundance and Economic Growth, endeavoured to answer an important question in economic research: does economic growth cause an increase in energy consumption or does an increase in energy availability cause an increase in economic activity, or both?

The question has important implications for government policy. Suppose GDP (i.e., national income) growth causes increased energy consumption, but is not dependent on it. In this view, energy consumption is like a luxury good (like jewelry), the consumption of which arises from increased wealth. If policy makers wanted to, they could restrict energy consumption without impinging on future economic and employment growth. The alternative view is that energy is a limiting factor (or essential input) to growth. In that framework, if energy consumption is constrained by policy, future growth will also be constrained, raising the economic costs of such policies. If both directions of causality exist (i.e., if economic growth causes increases in energy consumption and increases in the availability, and use of energy causes economic growth), it still implies that restrictions on energy availability or increases in energy prices will have negative effects on future growth.

The main contribution of the report, in terms of economic theory, is that it shows how new statistical methods have been developed that allow for investigation of whether the relationships between economic growth and growth in energy use are simply correlated or are causal in nature. The theoretical and methodological discussion in the report is quite complex, even for a trained economist, which is probably why the report received very little public attention. The clear conclusion of the analysis, however, is that growth and energy either jointly influence each other, or that the influence is one-way from energy to GDP. Further, of all the OECD countries studied, Canada shows the most consistent evidence on this, in that studies under a variety of methods and time periods have regularly found evidence that energy is a limiting factor in Canadian economic growth.

In other words, real per-capita income in Canada is definitely constrained by policies that restrict energy availability and/or increase energy costs, and growth in energy abundance leads to growth in Canadian GDP per capita.

The report concludes with a reference to Ontario’s electricity policies.

“These considerations are important to keep in mind as policymakers consider initiatives (especially related to renewable energy mandates, biofuels requirements, and so forth) that explicitly limit energy availability. Jurisdictions such as Ontario have argued that such policies are consistent with their overall strategy to promote economic growth. In other words, they assert that forcing investment in wind and solar generation systems – while making electricity more expensive overall – will contribute to macro-economic growth. The evidence points in the opposite direction. Policies that engineer energy scarcity are likely to lead to negative effects on future GDP growth.”

One can read the entire Fraser Institute report at:

http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/energy-abundance-and-economic-growth.pdf

Robert Lyman

Ottawa

Ottawa economist on the Fraser Institute report: Ontario in bad shape

18 Tuesday Mar 2014

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ 2 Comments

Tags

Charles Sousa, cost benefit wind power, finances Ontario, Fraser Institute, health care Ontario, Kathleen Wynne, Ontario, Ontario government, Ontario Liberal government, public debt Ontario, renewable energy Ontario, Robert Lyman

HIGHLIGHTS OF THE FRASER INSTITUTE REPORT

Comparing the Debt Burdens of Ontario and California

On March 8, 2014, the Vancouver-based Fraser Institute published a research study comparing the debt burdens of the state of California and the province of Ontario. Within the United States, many people consider California to represent a prime example of irresponsible government spending coupled with poor cash management. However, the Fraser Institute report uses a number of measures to compare Ontario’s situation to that of California. In almost all cases, Ontario is much worse.

Here are the highlights of the report:

  • California’s current debt in the form of government-issued bonds is US $144.8 billion, while Ontario carries CDN $267.5 billion, almost double the amount of California.
  • This figure actually understates the disparity between the two regions, as California has a much larger economy. The gross debt in the form of bonds is 7.6% of California’s economy, while it is a “whopping” 40.9% of Ontario’s economy, more than five times as large as California.
  • Per capita, each Ontarian’s share of provincial government debt is CDN $20,166 (i.e. $80,664 for a family of four), compared to US$ 3,844 in state government debt for each resident of California.
  • Servicing this debt through interest payments is more costly in Ontario. 9.2% of budget revenues in Ontario are devoted to interest payments, compared to 2.8% in California.
  • Ontario’s expenditures as a share of the economy grew from 15.5% in 2001-2002 to 19% in 2011-2012.
  • Over this period, total government spending in Ontario has been steadily increasing from one year to the next. Thus, unlike California, Ontario has not managed to stabilize the growth of the debt in terms of GDP.
  • Ontario’s net debt for 2012-2013 is the second highest as a percentage of GDP of any Canadian province, trailing only Quebec. However, Quebec’s annual budget deficit was only half as large – 0.7 % compared to Ontario’s 1.4 %.
  • Ontario’s budget analysts project that from 2012-2013 to 2015-2016 net interest payments will represent the fastest growing expense for the provincial government, growing at 5.5 % annually – more than twice the projected rate of health care expenditures.

Robert Lyman

Ottawa, March 18, 2014

Editor: It’s worth noting that Energy Minister Bob Chiarelli admits Ontario is spending $1B a year on power generated from wind energy; he also admits we don’t need it. Sound financial planning!

The Fraser Institute report is available here.

National Post: Ontario paying a high price

11 Thursday Apr 2013

Posted by ottawawindconcerns in Health, Ottawa, Renewable energy, Wind power

≈ 1 Comment

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cost benefit wind power, cost-benefit renewable power, electricity rates Ontario, Fraser Institute, Green Energy Act, health effects wind turbines, high cost electricity Ontario, national Post, Ontario Liberal government, power bills Ontario, Scott Sinsin, wind power projects

National Post columnist Scott Stinson weighs in on Ontario’s power situation today, saying the province is paying a very high price for “green energy.”

Labelling the government’s handling of this issue as “spectacular mishandling” and an example of poor governance (we would venture to say there’s more than a dollop of misfeasance in there, too), Stinson says government actions have had a “punitive” effect on taxpayers.

And, it’s all for nothing. The Green Energy Act was created to solve a problem that didn’t exist. Ontario already had lots of “clean” power in the form of hydro and nuclear, and we did not need to create a subsidy system that had the effect of shovelling ratepayer money into the pockets of huge corporations, many of them foreign-owned.

Read the article here and pass it along to your friends and family. It’s time the voters of this province got out of the “green” fog and checked their wallets.

http://fullcomment.nationalpost.com/2013/04/11/ontario-green-energy-act/

Email us at ottawawindconcerns@gmail.com

and be sure to check for news and postings through the day at http://www.windconcernsontario.ca

 

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