Week 6 of UCalgary MPP 2023-2024 Class

Oct. 2 – Oct. 6, 2023; The weeks are flying by. In my Competitive Policy elective (PPOL699), we delved into the Canadian Competition Act, unpacking its crucial elements. Meanwhile, in PPOL602: Markets and Public Policy, we explored the bedrock principles of the economy. We examined welfare economics, which focuses on how resource allocation impacts economic well-being. Topics like consumer surplus, producer surplus, total surplus, deadweight loss, tax rate, and tax revenue were dissected. An intriguing concept for me was the Laffer curve, initially observed by the medieval Muslim sociologist and philosopher, Ibn Khaldun (1332-1406). The term was later coined by Jude Wanniski in 1974, inspired by Dr. Arthur Laffer’s discourse with Nixon/Ford Administration officials Dick Cheney and Donald Rumsfeld. It shows the relationship between tax rate and revenue, indicating that revenue is most likely not maximized when tax rates are at 100%, as this disincentives workers from earning wages. Additionally, it illustrates the argument that cutting tax rates can result in increased total tax revenue.

During our PPOL 619: Governance, Institutions, and Public Policy lecture we delved into the intricacies of government institutions, with a specific focus on Canadian and American systems. We explored the parallels and contrasts between the two, touching upon their voting systems and the make-up of parliament vs congress. A core principle that stood out is the notion of a responsible government, which is predicated on maintaining the confidence of the House of Commons. Notably, the cabinet (government) is accountable to the house, and in turn, the house members owe their responsibility to their constituents.

A notable mention was William Mackenzie King, who holds the record for being the longest-serving Prime Minister of Canada, leading the nation for a remarkable 21 years, both from 1926-1930 and then from 1935-1948.

A significant portion of our discussion revolved around the judiciary and the delicate division of power between federal and provincial governments. A pivotal moment in this context is the "patriation" of the Canadian Constitution in 1982. Previously under the authority of the British Parliament as the British North America (BNA) Act, it was transferred to Canada's federal and provincial legislatures, marking a monumental shift in Canadian autonomy. Along with this transfer, the Constitution was renamed the Constitution Act, 1867. Additionally, it was updated with a new amending formula and a Charter of Rights and Freedoms. Fulfilling Prime Minister Pierre Trudeau (15th prime minister; 1968-1979 and 1980-1984) lifelong goal of bringing the Canadian constitution home. This transformative period in Canadian history was not without its challenges. It was marked by an intense, 18-month political and legal struggle that dominated headlines and became the central focus of every government in the country.

On October 4th, I had the privilege of attending the Alberta Chamber of Resources' (ACR) Fall 2023 Environmental Forum, tickets gifted to UCalgary's School of Public Policy by the ACR. The experience was insightful and an excellent networking opportunity.

Key Takeaways:

  • Small Modular Reactors' (SMR) application in the oil sands remains a decade or more away. While its relevance in the 2050 net-zero target might be questioned, it holds promise for future net-zero oil sand operations.
  • Annual aggregate consumption for construction stands at approximately 15 tons/person, with 60% being utilized in infrastructure by federal, provincial, and municipal projects.
  • There are currently 643 major projects underway in Alberta (>$5M in cost), with a cumulative estimated expenditure of $176B.
  • Transport contributes the largest share of emissions in the aggregate business. As sources near the QEW2 corridor deplete, minimizing transport distance to reduce emissions becomes challenging. The need for commercial trucks fueled with clean alternatives grows.
  • Alberta's Emissions Reduction and Energy Development Plan sets its sights on a carbon-neutral economy by 2050, prioritizing affordable, reliable, and secure energy. The focus leans heavily towards decarbonizing up to ~90% of the economy, acknowledging the financial and technological challenges of the last ~10%.
  • Alberta’s landscape is ideal for Carbon Capture, Use, and Storage (CCUS). With a solid regulatory framework and unique geology, Alberta is poised to store enough CO2 to achieve carbon neutrality by 2050. The growing list of proposed CCUS projects in Alberta is impressive, with 25 CCUS hubs greenlit for evaluation in 2022.

*Photo: Vancouver Harbour, Sept. 18/2021.

Summit photo