Time for a true or false pop quiz. Is the following a self-evident statement of economic fact? “A capital asset which is not currently being exploited has a value of zero for all purposes.”
I only ask because that seems to be the fundamental assumption behind Andrew Leach’s cost-benefit analysis comparing raw bitumen mining to upgrading. And unfortunately, Leach’s viewpoint seems to fit all too well with the current resource management philosophy of provincial and federal governments alike.
Here’s Leach’s conclusion as to a hypothetical set of developments – one involving an extraction project alone, one an attached upgrader: (Read more…)
This and that for your Thursday reading.
- Don Braid comments on Alberta’s complete lack of credibility when it comes to greenhouse gas emissions and other environmental issues. And Andrew Leach nicely sums up the PC/Con position in trying to put a happy face on growing emissions: Suppose you run into an old friend whom you haven’t seen for some time. You notice that he looks a little thicker than you remembered around the waist, but, since you aren’t one of those academics who shuns basic manners, you keep mum.
“How are you doing?” you say, “What’s new? (Read more…)
“We see Northern Gateway as the most vulnerable,” Samir Kayande, vice-president at ITG Investments, said during a panel discussion on the Financial Post website this week. “[TransCanada's Corp.'s] Energy East and TMX [Kinder Morgan Inc.'s Trans Mountain] are most likely [with TMX benefiting from having built the loop through Jasper before the opposition to pipelines really built],” said Andrew Leach, associate professor at the University of Alberta, who participated in the discussion.
“Both have [at least partial] existing rights-of-way and so are starting from a better place….
This sounds about right to me. Note the modifier “at least (Read more…)
Here, on how “we must increase stock prices!” – or worse yet, “we must increase company X’s stock prices!” – makes for a thoroughly regressive public policy goal.
For further reading…- The examples referenced in the column include Carol Goar’s column threatening a revolt over telecom share prices, and Andrew Leach’s piece about oil sands production costs (which at least acknowledges royalties as another concern beyond the hope that some profits might find their way into pension funds).- The wealth distribution data mentioned in the column is found in Armine Yalnizyan’s The Rise of the (Read more…)
This and that for a sunny Saturday.
- Paul Wells discusses the clash shaping up between the Cons and the NDP: Some 57 per cent of respondents said they’re dissatisfied with the Harper government, compared to 36 per cent who like it. Last month’s federal budget drew more unsatisﬁed reaction than satisﬁed, and respondents who associated themselves with “the left” outnumbered those sympathizing with “the right” everywhere except Ontario (where they tied) and the three Prairie provinces.
Those numbers don’t spell Conservative doom. They do suggest a non-Conservative alternative has a fighting chance. So too does another poll from Environics
. . . → Read More: Accidental Deliberations: Saturday Afternoon Links