TAILIEUCHUNG - Climates of Change: Sustainability Challenges for Enterprise

The government is taking the lead by developing a management plan for the northeast region of Alberta. This plan will look beyond oil sands development on a project-by-project basis by addressing the cumulative effects of development. This approach enables responsible resource development that incorporates creative and innovative solutions to secure economic prosperity, while maintaining the province’s commitment to environmental protection and stewardship. This cumulative effects approach has already been implemented to manage the potential environmental pressures of upgrading bitumen in Alberta’s Industrial Heartland near Edmonton. This new cumulative effects management framework sets comprehensive, science-based targets, outcomes and actions to protect the air,. | OXFORD ISSN 2041-532X Climates of Change Sustainability Challenges for Enterprise Smith School Working Paper Series Editor Dr Mick Blowfield 17 December 2009 Working paper 004 Government Failure and Market Failure On the Inefficiency of Environmental and Energy Policy Dr David Anthoff Economic and Social Research Institute Dublin Dr Robert Hahn Smith School of Enterprise and the Environment and Georgetown Center for Business and Public Policy Smith School of Enterprise and the Environment University of Oxford Hayes House 75 George Street Oxford OX1 2bQ 1 OXFORD Climates of Change Sustainability Challenges for Enterprise Smith School Working Paper Series Government Failure and Market Failure On the Inefficiency of Environmental and Energy Policy Dr David Anthoff and Dr Robert Hahn Prepared for the Oxford Review of Economic Policy 1. Introduction In this essay we characterize some important themes in energy and environmental policy. As economists we are particularly interested in the relative effectiveness and efficiency of various polices that is whether a specific policy meets its intended goals and whether that policy is likely to do more good than harm when important impacts such as those related to the environment health safety or energy security are taken into account. There are two main reasons for our interest in energy and environmental policies. First we believe such policies will be critically important in the coming decades as issues related to climate change and energy security come to the fore. Second we believe there are important lessons to be learned from a careful review of the actual performance of energy and environmental policies. Our focus will be on recent empirical studies of energy and environmental policies. We undertake a selective survey of the literature to highlight what is known about the efficiency of particular kinds of policies laws and regulatory interventions in the area

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