Alberta’s government has launched a national ad campaign targeting the federal government’s incoming emissions cap for the oil and gas sector.
Premier Danielle Smith says it’s a de facto production cap that would kill jobs and stifle the economy.
The province’s $7-million “Scrap the Cap” campaign also says the federal regulations expected later this year would make groceries, gas and all of life’s necessities even more expensive.
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University of Calgary economist Trevor Tombe says he believes the emissions cap is bad policy, but the argument that it would drive up gas, and therefore grocery, prices is a weak one.
Tombe says gasoline prices would not go up as a result of the cap because they are largely determined by taxes, retail markups and margins, and global oil prices.
He says it also isn’t necessarily a production cap if the sector is able to achieve emission reductions, as some industry groups have promised.
