GGR221H1 Lecture Notes - Greenhouse Gas, Capital Cost Allowance, Dutch Disease

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Published on 12 Apr 2013
The Tar Sands and Staples theory
Geography: we live right next to the world's largest consumer of oil
Institutions: govt has played an imp role in playing a role in the development of
the technique of being able to foam of the mixture from the surface. govt
research is very critical
we won't' have this resource without the govt being able to lease this land to
been leased out on very favourable terms (subsidies) . large multinational oil
companies. generous subsidies
low royalty rates- most other parts of the world the govt charges a lot more. in
Canada- royalty rates are only 1% until you've paid your construction and
development costs, after that they're 25%. incredible tax holiday that large
multinational companies are able to enjoy. the govt is not making so much
money off it.
federal tax holidays (Accelerated Capital Cost Allowance)
Foreign investment: wouldn't have seen this development if it wasn't for foreign
free trade encourages an environment where partnerships and businesses are
flourishing. institutions are of critical importance to how industries develop
technology has now been imported and so have the other resources used in
the process
little R&D
Problems in respect to the Tar Sands:
1. we may have reached the point of peak oil: the worlds supply of fossil fuels is
on a downward slope…will have to develop reliable options of renewable
sources of energy
2. Climate change: contribution of tar sands to climate change, green house
emissions, so much public concern over this issue. govt is spending a lot
of money on a public relations campaign to convince people that its not all
that bad.
3. water depletion: two main types of tar sands development: open land and in-
4. reclamation: trying to figure out ways to regrow plants and trees on lands that
have been subject to tar sands
5. Impact on environment and health: range of unusual cancers, etc.
by 2020 US will overtake Saudi arabia in oil and gas: huge concern.
Innis said that if you rely on just a few markets then you're highly vulnerable.
Dutch disease: canada suffered from a form of Dutch disease. where
competitiveness of the currency declines because it makes our dollar look strong
just by one item: Mulcar
Canada has become a "petro-state" and this has thus damaged our
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