Energy Policy
journal homepage: www.elsevier.com/locate/enpol
GERAD and Universit du Qubec Montral, 3000 Chemin de la Cte St-Catherine, Montral, QC, Canada H3T 2A7
GERAD and Department of Management Sciences, HEC Montreal, Montreal, QC, Canada
H I G H L I G H T S
art ic l e i nf o
a b s t r a c t
Article history:
Received 10 August 2012
Received in revised form
5 September 2013
Accepted 11 September 2013
Available online 4 October 2013
This paper presents an analysis of Canadian energy and climate policies in terms of the coherence
between federal and provincial/territorial strategies. After briey describing the institutional, energy, and
climate contexts, we perform a SWOT analysis on the themes of energy security, energy efciency, and
technology and innovation. Within this analytical framework, we discuss the coherence of federal and
provincial policies and of energy and climate policies. Our analysis shows that there is a lack of
consistency in the Canadian energy and climate strategies beyond the application of market principles.
Furthermore, in certain sectors, the Canadian approach amounts to an amalgam of decisions made at a
provincial level without cooperation with other provinces or with the federal government. One way to
improve policy coherence would be to increase the cooperation between the different jurisdictions by
using a combination of policy tools and by relying on existing intergovernmental agencies.
& 2013 Elsevier Ltd. All rights reserved.
Keywords:
Canadian energy and climate policies
SWOT analysis
Federalprovincial governance structure
1. Introduction
Canada has a remarkable energy prole with abundant and
diverse resources. It is also characterized by large inequalities in the
distribution of its resources and a federal structure that imposes
several levels of governance and jurisdiction. Energy and climate
policies are often interrelated; for instance, energy policies encouraging fossil fuel production conict with climate policies aimed at
reducing greenhouse gases. These policies are implemented by both
the federal and provincial governments according to a sometimes
ambiguous distribution of jurisdictions. Moreover, economic and
environmental realities, the diversity of energy sources, and energy
demands vary greatly among Canadian provinces. As a result,
energy and climate policy objectives and the means to reach them
also differ. There is therefore a multiplication of federal and
provincial strategies, sometimes complementary, but often
Corresponding author Tel.: 1 514 340 6053x6910; fax: 1 514 340 5665.
E-mail address: Camille.fertel@gerad.ca (C. Fertel).
0301-4215/$ - see front matter & 2013 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.enpol.2013.09.057
1140
1
See for instance Weihrich (1982), Hill and Westbrook (1997), and Valentin
(2001).
2
See for instance Celiktas and Kocar (2009) and Tavana et al. (2012).
3
4
1141
Table 1
Provincial and federal resource administration.
Source: International Energy Agency (IEA) (2010a)
Provincial governments
Federal government
a
Canada's frontier lands are those lands over which the government of Canada has the right to dispose of or exploit mineral resources, including oil and gas. Frontier
lands include all of Canada's offshore areas not within a province, the Northwest Territories, Nunavut, and Sable Island. They cover an area of approximately 10.2 million
square kilometers.
6
The energy-resource prospects of the Canadian North and the Arctic could
lead to new challenges for the federal government (exploitation leadership,
negotiations with territories and/or with First Nations).
7
The ofcial acronym used in Canada is EC. We use here the acronym ECan to
distinguish between Environment Canada and the European Commission.
1142
Environment (CCME) is the counterpart of the CEM for environmental issues. In this council the fourteen ministers (from the
federal and regional governments) discuss environmental issues
that require cooperation between governments.
In this context, two elements must be highlighted:
Table 2
Summary of principal regional and federal measures.
Source: Environment Canada (2011).
Regional measures
1143
Federal measures
Regulations for passenger automobile and light-duty truck
emissions
Electricity performance standards
Strengthened energy-efciency standards
Renewable content regulation for fuels (5% ethanol)
EcoENERGY a measures in the following sectors:
Building and housing,
Industry and trade,
Transport,
Energy production,
Technology and innovation
a
These measures belong to the EcoEnergy innovation and initiative corresponding to the second phase of Canada's economic action plan
for a comprehensive suite of R&D and demonstration projects.
1144
Table 3
GHG emission-reduction targets set by regional governments for 2020 and 2050.
Source: Compiled using provincial climate strategy documents.
Region
Target
2020
2050
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
Nova Scotia
Newfoundland and
Labrador
Prince Edward Island
Northwest Territories
a
The alberta climate change action plan's overall target is to reduce GHG
intensity, or emissions relative to GDP, by 50% by the year 2020. The 50% target is
relative to 1990 (Bramley, 2002).
8
The emergency law for the distribution of energy, the law on emergency
measures, etc.
9
The Emergency Supply Allocation Board.
10
The dependence on oil can be explained by lock-in issues relating to the
production and distribution infrastructure for liquid fuels. See, for instance, Pearson
and Foxon (2012); Unruh (2000, 2002); and Unruh and Carrillo-Hermosilla (2006).
11
The United States has long been our central destination for energy exports.
Americans are excellent customers. But the U.S. no longer enjoys uncontested
dominance in the world's economy. China and India want our energy supplies, too.
Alberta has opportunities to reduce our singular dependence on the U.S. market
and improve our bargaining power by cultivating additional markets (Launching
Alberta's Energy Future, provincial energy strategy, p. 16).
1145
Fig. 1. Canadian emission prole and objectives until 2020 (in Mt CO2 eq). .
Source: Environment Canada (2011)
Table 4
Synthesis of SWOT analysis.
Strengths:
Weaknesses:
Opportunities:
Threats:
Energy security:
Energy security:
Energy security:
Energy security:
Important element within the
Absence of a consistent
Signicant increase in global energy
Cost of interprovincial
federal jurisdiction
federal strategy because
demand
transport infrastructure
of lack of coordination
compared to current
Existence of a regulation agency
Forecast rise in energy prices
with provincial
relatively low cost of oil
(the Energy Supplies Allocation
Canada's position on global energy
strategies
imports
Board) and of federal legislation
markets
for energy supply
Overlapping
Importation from
jurisdictions of
politically unstable
Present in all provincial energy
Energy efciency:
provincial and federal
countries
strategies
Businesses aware of economic
governments
Signicant investment to
Increase in national
advantages gained through efciency
promote diversication of
tensions around
Lack of infrastructure for
improvements
supply
resources
interprovincial
Policies encouraging the development
exchanges of energy
Signicant and diversied
NAFTA requirement to
of energy-efcient technologies that
resource endowment able to
supply the US market
Dependence of some
stimulate job creation in the context
offset a possible decline in
regions on foreign
Non-conventional
of a global economic slowdown
imports
energy imports
sources vulnerable to
Important element for climate policy
environmental
Slowness of regulatory
regulations
processes for the
Energy efciency:
Innovation and technology:
implementation of new
Signicant federal involvement
International and North American
infrastructure for
Energy efciency:
in improving energy efciency
cooperation
transporting energy
(through investments,
Highly energy-intensive
Rising prices of energy resources at
standards, regulations, scal
country
the global level
measures)
Energy efciency:
Restrictions owing to
Canada's position on energy
climate prole
EcoAction programs for the
Absence of a coherent
technology markets
pomotion and deployment of
national strategy
Low cost of energy
Investments in clean technologies (e.
new technologies with
because of lack of federal
Cost of investment
g., CCS) creating synergies with
improved energy efciency
targets
because of low
climate policy
population density
Cooperation and shared
Low energy price
Consolidation of expertise in
involvement between regions
discourages necessary
unconventional fossil fuel extraction
and the federal government
investment
Innovation and technology:
Time needed to develop
and implement new
Innovation and technology:
Innovation and technology:
technologies
Large federal investment in
Absence of coordination
R&D and energy innovation
among provincial and
Constraints imposed by
federal strategies
the global economic
Structured federal policy
because of different
slowdown (costs,
Public-private partnerships at
priorities
budget, demand)
the provincial and federal levels
No incentive for better
Technological lock-in
interprovincial or
provincial/federal
cooperation
Lack of long-term vision
for the electricity
network
1146
Table 5
Estimated federal energy R&D expenditure per activity type, 2008/2009, in percentages and thousands of Canadian dollars.
Source: International Energy Agency (IEA) (2010a).
Activity
Federal
Regional
Total
Energy efciency
99%
(90,499)
44%
(84,455)
99%
(271,666)
91%
(34,207)
65%
(51,458)
96%
(17,396)
75%
(9,376)
1%
(6,736)
56%
(107,905)
1%
(26)
9%
(3,311)
35%
(27,338)
4%
(760)
25%
(3,226)
100%
(97,236)
100%
(192,359)
100%
(271,692)
100%
(37,518)
100%
(78,796)
100%
(18,156)
100%
(12,602)
14
79%
(559,057)
21%
(149,301)
100%
(708,358)
12
27
38
5
11
3
2
100
top priority for Quebec: it is the fourth objective (of six) in its
energy strategy. This is because Quebec has a hydro-dominated
power grid and thus benets from one of the lowest electricity
price levels in North America.
Overall, energy efciency is a domain where the federal and
regional governments actively cooperate to achieve their combined objectives. This cooperation exists because it is a winwin
strategy. This may be partly explained by the fact that energy R&D
is mainly supported through federal funding (see Table 5);
whereas the provinces focus on implementation. Energy efciency
also reduces GHG emissions while sustaining economic activity.
Energy efciency is thus an issue where the federal and regional
policies appear to be quite coherent.
1147
Table 6
Provinces reporting R&D expenditure on clean-energy technology, 2008/2009a.
Source: International Energy Agency (IEA) (2010a).
British Columbian
Albertanb
Ontarion
Quebecn
Saskatchewann
CAD 45 M
CAD 89 M
CAD 34 M
CAD 26 M
CAD 32 M
Renewable (69%)
a
b
Energy efciency
(29%)
Prince Edward
Island
CAD 2.5 M
Nova Scotia
CAD 24 M
Oil and gas (78%)
New
Brunswick
CAD 0.3 M
Renewable
(100%)
Renewable (ocean)
(22%)
15
1148
16
Even if GHG are not considered pollutants they might cause harmful effects,
as suggested by Valentine (2010).
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