Climate change will push Canadian business onside

"If we can get companies putting their innovative genius to work on solving environmental problems, we're going to find solutions that we can't even imagine today," says Stewart Elgie, a professor of law and economics at the University of Ottawa.

Nova Scotia Should Become the Second Province to Adopt a Carbon Tax

This past December, the World Bank lauded British Columbia's carbon tax as "the most powerful example" of effective climate policies. A year earlier, the secretary general of the Organization for Economic Cooperation and Development (OECD) called it "as close to a textbook example as we have" of climate policy done right. The United Kingdom's Green Fiscal Commission also gave it a high-five, as did The Economist.

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About the Project

The goal of this project is to shed light on the relationship between economic activity and the environment by exploring the linkages between changes in our natural capital and our measures of productivity generally, and through the construction of an environmentally adjusted measure of productivity specifically.

While it is now commonly accepted that economic activity and the state of our environment are linked, many economic measures still fail to incorporate the environment – both the things we draw from it and the pollution we release into it. By developing and calculating measures of productivity that include natural capital, Canada may be able to better understand these linkages. This, in turn, may lead to the identification of strategies that can help Canada become more efficient and innovative in the use and protection of natural capital, and thus more productive and more prosperous.

Using the forestry sector as a case study, this project aims to construct an environmentally adjusted measure of multifactor productivity. In doing so, we aim to add another layer of understanding to the environmental and economic performance of this sector. The proposed measure will have relevance to the Canadian economy as a whole.