Archive
Ensuring Canadian Access to Oil Markets in the Asia-Pacific Region
Ensuring Canadian Access to Oil Markets in the Asia-Pacific Region
Source: Fraser Institute
This report provides a comprehensive overview of the outlook for Alberta crude oil and bitumen production and an assessment of the economic attractiveness and feasibility of exporting oil to countries in the Asia-Pacific region instead of solely to markets in the United States. It also describes the extent of the new oil pipeline infrastructure that would be needed to allow oil exports to Asia-Pacific region under two scenarios: 1. no increase in oil sands bitumen production capacity from a base-case forecast; and 2. bitumen production capacity increased from that in the base case to supply Asian markets after 2026. The likely gross employment and overall economic (GDP) benefits from construction and operation of the required facilities are also discussed.
The report also examines unnecessary regulatory and other barriers that are inhibiting the development of the pipelines and port facilities required to ship crude oil, raw bitumen and synthetic crude oil (i.e., upgraded bitumen) to the west coast and on to oil refineries in Japan, Korea, China, India and other countries in Asia that are increasingly becoming dependent on oil imports.
Global Petroleum Survey 2012
Global Petroleum Survey 2012
Source: Fraser Institute
The 2012 Fraser Institute Global Petroleum Survey presents the results of the Fraser Institute’s 6th annual survey of petroleum industry executives and managers regarding barriers to investment in upstream oil and gas exploration and production in various jurisdictions around the globe. The survey responses have been tallied to rank provinces, states, and countries according to the extent of the investment barriers. Those barriers, as identified by the survey respondents, include high tax rates, costly regulatory schemes, uncertainty over environmental regulations and the interpretation and administration of regulations governing the petroleum industry, and security threats. A total of 623 respondents participated in the survey this year, providing sufficient data to evaluate 147 jurisdictions. By way of comparison, 135 jurisdictions were evaluated in the 2011 survey, 133 in 2010, and 143 in 2009. The jurisdictions were assigned scores for each of 18 factors that affect investment decisions. The scores are based on the proportion of negative responses a jurisdiction received. The greater the proportion of negative responses for a jurisdiction, the greater were its perceived investment barriers and, therefore, the lower its ranking.
Canada — Stealth Confiscation: How governments regulate, freeze, and devalue private property-without compensation
Stealth Confiscation: How governments regulate, freeze, and devalue private property-without compensation
Source: Fraser Institute
From press release:
Canada is far behind Europe when it comes to compensating property owners for government restrictions on private property, concludes a new book published by the Fraser Institute, Canada’s leading public policy think-tank.
“Unlike Europe, where governments of all stripes compensate private property owners when regulation acts as de facto expropriation, governments in Canada can wholly or partly freeze your property through regulation and not offer a dime in compensation,” said Mark Milke, Fraser Institute director of Alberta policy research and author of Stealth Confiscation: How Governments Regulate, Freeze, and Devalue Private Property—Without Compensation.
“That’s a major policy failure and a black eye on Canada’s reputation for fairness.”
In the book, Milke points out that Canada’s record of non-compensation for a loss of use from regulation sets it apart from other Western countries. A survey of 13 nations found Canada and Australia to be the most restrictive about compensating for regulatory takings. By contrast, Poland, Germany, Sweden, Israel, and the Netherlands provide the broadest compensation rights.
Access Delayed, Access Denied: Waiting for New Medicines in Canada: 2012
Access Delayed, Access Denied: Waiting for New Medicines in Canada: 2012
Source: Fraser Institute
Key findings
- On average, Canadians wait over two years for access to new drugs because of federal delays in approving them and provincial delays in authorizing reimbursement.
- Health Canada took longer to approve new medicines than the European Medicines Agency in all five years studied—2006, 2007, 2008, 2009, and 2010.
- Health Canada took longer to approve new medicines than the American Food and Drug Administration (FDA) in six of the last seven years studied—2004 to 2010.
- On average, only 23% of the new drugs that Health Canada certified as safe and effective between 2004 and 2010 have been declared eligible for reimbursement under provincial public drug programs as of January 1st, 2012.
- Private-sector drug insurance plans have provided reimbursement for 84% of new drugs approved by Health Canada from 2004 to 2010 (as of January 1st, 2012), and have covered them more rapidly than public drug insurance.
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See also: Canadian Federal Health Transfers to the Provinces 2012 edition
Canadian Environmental Indicators – Air Quality
Canadian Environmental Indicators—Air Quality looks at the state of air quality in Canada and examines air quality regulations. The study examines long-term monitoring data from Environment Canada’s National Air Pollution Surveillance network on five major air pollutants regularly cited as posing health risks to Canadians: ground-level ozone, particulate matter, nitrogen dioxide, sulfur dioxide, and carbon monoxide. The study also examines the air quality standards and regulatory mechanisms already in force in Canada to determine whether local air quality is getting better or worse, and how it compares to the clean-air targets in place across the country.
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Official Language Policies of the Canadian Provinces: Costs and Benefits in 2006
This study examines the costs and benefits of the official language policies of the 10 Canadian provinces and calculates how much each province spends on providing services in French to a francophone minority. In Quebec’s case, the report looked at the cost of providing services in English to the anglophone minority.The study is a complement to Official Language Policies at the Federal Level in Canada, a study of the costs and benefits of the federal government’s official language policies, published by the Fraser Institute in 2009 (Vaillancourt and Coche, 2009). Official Language Policies of the Canadian Provinces focuses on the costs and benefits of the official language policies in 2006 as there is no evidence of any significant change in the provincial policies towards official minorities since then.The first chapter presents some statistics on official language minorities and explains the constitutional dimension of the question and the methodology used to calculate costs. The following chapters present the situation in the ten provinces.
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Waiting Your Turn: Wait Times for Health Care in Canada, 2011 report
This edition of Waiting Your Turn indicates that waiting times for elective medical treatment have increased since last year. Specialist physicians surveyed across 12 specialties and 10 Canadian provinces report a total waiting time of 19.0 weeks between referral from a general practitioner and receipt of elective treatment. At 104 percent longer than it was in 1993, this is the longest total wait time recorded since the Fraser Institute began measuring wait times in Canada.Wait times between 2010 and 2011 increased in both the segment between referral by a general practitioner to consultation with a specialist (rising to 9.5 weeks from 8.9 weeks in 2010), and the segment between a consultation with a specialist and receipt of treatment (rising to 9.5 weeks from 9.3 weeks in 2010). In fact, physicians themselves believe that Canadians wait nearly 3 weeks longer than what they consider is clinically “reasonable” for elective treatment after an appointment with a specialist. There is, however, a great deal of variation in the total waiting time faced by patients across the provinces. While Ontario reports the shortest total wait in 2011 (14.3 weeks); Prince Edward Island reports the longest at 43.9 weeks. The same is true of variations among specialties. Patients wait longest between a GP referral and plastic surgery (41.6 weeks), while those waiting for medical oncology begin treatment in 4.2 weeks.
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Manitoba top province for donating money to charity but Canadians still much less generous than Americans
Manitoba is Canada’s most generous province, but Canadians continue to trail their American neighbours on private charitable giving, according to a new report on private monetary generosity from the Fraser Institute, Canada’s leading public policy think-tank.“By comparing the share of tax filers making charitable donations and the share of income donated to charities across North American jurisdictions, our report reveals a significant generosity gap between Canadians and Americans,” said Charles Lammam, Fraser Institute senior policy analyst and co-author of the report.“This generosity gap undoubtedly limits the power and potential of charities to improve the quality of life of Canadian families that are in need.”For the 13th year in a row, Manitoba ranked as the most generous province in Generosity in Canada and the United States: The 2011 Generosity Index, published annually by the Fraser Institute. The index measures and compares monetary generosity in Canada’s 10 provinces and three territories and in the 50 American states and Washington, D.C. using data on charitable donations as recorded on personal income tax returns in the 2009 tax year (the most recent year of comparable data available).Among the provinces, Manitoba had both the highest percentage of tax filers donating to registered charity (26.0 per cent) and the highest percentage of total income donated (0.89 per cent).
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Economic Freedom of North America 2011
Economic Freedom of North America 2011
Source: Fraser Institute
The index published in Economic Freedom of North America rates economic freedom on a 10-point scale at two levels, the subnational and the all-government. At the all-government level, the index captures the impact of restrictions on economic freedom by all levels of government (federal, state/provincial, and municipal/local). At the subnational level, it captures the impact of restrictions by state or provincial and local governments.
Economic Freedom of North America employs 10 components for the United States and Canada in three areas: 1. Size of Government; 2. Takings and Discriminatory Taxation; and 3. Labor Market Freedom.
Not only is economic freedom important for the level of prosperity: growth in economic freedom spurs economic growth. As expected, the impact of economic freedom at the all-government level is greater than the impact at the subnational level since the first index captures a broader range of limitations on economic freedom than the second.
This is the seventh edition of the annual report, Economic Freedom of North America. The statistical results of this year’s study persuasively confirm those published in the previous six editions: economic freedom is a powerful driver of growth and prosperity. Those provinces and states that have low levels of economic freedom continue to leave their citizens poorer than they need or should be.
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The Personal Cost and Affordability of Auto Insurance in Canada: 2011 Edition
The Personal Cost and Affordability of Auto Insurance in Canada: 2011 Edition
Source: Fraser Institute
This study compares the average cost and affordability of personal passenger automobile insurance premiums in each of the 10 Canadian provinces from 2007 to 2009. Four provinces have government-owned monopolies that sell insurance coverage to drivers. The other six rely on a regulated competitive private sector to provide auto insurance.
Comparisons across all 10 provinces in the years from 2007 to 2009 show that the average price for auto insurance premiums was highest in British Columbia, Ontario, Manitoba, and Saskatchewan. Of those provinces, three have government-run auto insurance monopolies. The least expensive average premium in 2008 was in Prince Edward Island where auto insurance is delivered in a regulated, competitive, private-sector insurance market. The least expensive premium in 2007 and 2009 was in Quebec, which has a government-run auto insurance monopoly but only for bodily injury.
The study examines why Ontario has relatively high average premiums and why Quebec’s average premiums are relatively low. Ontario has relatively severe regulations, and is experiencing a significant problem with insurance fraud. Quebec has less onerous rate regulations and less generous prescribed benefits.
The findings are generally consistent with previous editions of this study and other previous research comparing auto insurance in international jurisdictions including all 10 Canadian provinces. All studies show that auto insurance does not tend to be less costly in jurisdictions that have government auto insurance monopolies, despite claims to the contrary.
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Measuring the Fiscal Performance of Canada’s Premiers, 2011
Measuring the Fiscal Performance of Canada’s Premiers, 2011
Source: Fraser Institute
The recession of 2008-09 and the following global economic uncertainty have drawn people’s attention to the importance of sensible fiscal policy. With many Canadian governments currently mired in debt, sound fiscal policy is needed now more than ever to ensure the country’s long-term economic success. Sound fiscal policy requires that political leaders prioritize, not simply increase, government spending; ensure balanced budgets; and avoid imposing a tax burden so heavy that it becomes a disincentive for people to work hard, save, invest, and be entrepreneurial. The economic record shows clearly that these factors are necessary for a return to stable economic growth and prosperity.
This Fraser Alert is designed to help Canadians hold their provincial political leaders accountable for the relative performance of their fiscal policies. In this second edition of Measuring the Fiscal Performance of Canada’s Premiers, we provide an objective, empirical assessment of how Canada’s premiers have managed the public finances of their provinces and whether they have pursued sound, long-term economic policies.
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Economic Freedom of the World: 2011 Annual Report
Economic Freedom of the World: 2011 Annual Report
Source: Fraser Institute
The index published in Economic Freedom of the World measures the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of privately owned property. Forty-two data points are used to construct a summary index and to measure the degree of economic freedom in five broad areas: (1) size of government: expenditures, taxes, and enterprises; (2) legal structure and security of property rights; (3) access to sound money; (4) freedom to trade internationally; and (5) regulation of credit, labor and business.
Canada — The Misguided War against Medicines 2011
The Misguided War against Medicines 2011
Source: Fraser Institute
Provincial health spending has grown faster on average than GDP for the last 37 years. Trends show that health spending will consume 50% of total available revenues (including federal transfers) in 6 of 10 provinces by 2017, up from roughly 25% in 1974. Some researchers blame unsustainable growth in government health spending on the cost of prescription drugs, particularly patented medicines. The evidence suggests otherwise. Prescription drugs account for a small percentage (9%) of government health spending; and patented prescription drugs are an even smaller percentage (5.2%). Excluding prescription drugs, all other non-drug categories of health expenditures (hospitals, professionals, etc.) are growing at an unsustainable pace, while accounting for 91% of government spending on health. There is no observable statistical link between the rising share of the health budget spent on drugs and variation in the growth rates in government health spending. Inflation-adjusted, post-market prices for patented drugs in Canada have been declining for 21 years, and introductory prices for patented drugs are at or below international prices.
The real cause of unsustainable growth in health spending is that government socializes too much of the private consumption costs of healthcare. Provinces subsidize 100% of the cost of medical goods and services through a redistributive, tax-funded, single-payer, government-run, insurance monopoly. Coverage is universal for hospital and physician services, but extends to drugs for only one-third of the population. Consumers are disconnected from the costs of the healthcare they personally use. As a result, the system lacks the normal economic incentives that would produce a sustainable balance between the demand for and supply of medical goods and services. Instead, governments constrain costs through central budget rationing, which creates intractable shortages because, while private insurance could cover unmet consumer demands for healthcare, governments effectively prohibit private payment for hospital and physician services.
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Average Personal Affordability of Prescription Drug Spending in Canada and the United States 2011
Average Personal Affordability of Prescription Drug Spending in Canada and the United States 2011
Source: Fraser Institute
Much of Canadian prescription drug policy is based on the assumption that without government intervention, the market will fail to achieve certain socially desirable outcomes, one of which is affordable access to prescription drugs. This assumption is the basis for justifying policies like price regulation, direct public provision of drug insurance, or government imposed restrictions on consumer choice through policies like mandated therapeutic substitution.
The findings of this study suggest that, on average, greater government intervention in Canada’s drug markets has not provided more affordable access to prescription drugs relative to a less interventionist policy in the United States. Further, this study notes that if other indirect factors are taken into account, there are probably net socio-economic costs associated with government intervention.
Preventing Disaster after a Disaster: Lessons for Canada from US Experience
Preventing Disaster after a Disaster: Lessons for Canada from US Experience
Source: Fraser Institute
There is a 30 percent chance that an earthquake strong enough to cause significant damage will strike southwestern British Columbia in the next 50 years, and a 5 to 15 percent chance that a major earthquake will strike southern Quebec or eastern Ontario. These quake zones encompass several population centers, including Vancouver, Victoria, Montreal, Ottawa, and Quebec City. If a major quake ever strikes one of these regions, renters, homeowners, and businesses will count on insurance to help them recover and rebuild. However, in addition to the hardships caused by property loss and injury, policyholders may face major impediments to recovery when insurance coverage from a natural disaster is split—a harsh lesson many Americans learned in 2005, after the US Gulf Coast was struck by a series of major hurricanes, including Hurricane Katrina.
The problems that occurred in the aftermath of Katrina demonstrate what can happen when distinctions are made in insurance coverage based on the cause of damage. Many of Katrina’s victims had insurance against wind damage, which was covered in standard insurance policies, but not flood damage, which was available only through a government program. The split in coverage resulted in costly payment delays and legal disputes.
Provincial legislation makes a similar distinction between damage caused by an earthquake and damage caused by subsequent quake-related fires. Fire following an earthquake is covered in standard home insurance packages, while earthquake coverage must be purchased separately. Alberta and BC have signaled their intention to maintain this distinction. The US experience shows that this approach could cause unnecessary hardships for insurers and policyholders alike.
The lesson from Hurricane Katrina is clear. Splitting natural disaster insurance coverage should be avoided wherever possible. Allowing insurers to offer comprehensive coverage against damage from a quake and any quake-related fires will prevent many of the problems policyholders faced following Katrina.
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New Study Touts Benefits of Expanded Oil Trade with Canada
New Study Touts Benefits of Expanded Oil Trade with Canada
Source: Competitive Enterprise Institute/Fraser Institute
Canada now provides more oil to the U.S. than all Persian Gulf countries combined, lessening America’s so-called “dependence” on oil from the Middle East, yet environmental pressure groups continue to oppose efforts to expand oil importation from Canada, especially crude derived from tar sands. A new study published by Canada’s Fraser Institute and the Competitive Enterprise Institute advocates expanding this trade relationship with Canada.
Using data compiled from both CEI and Fraser, author Mark Milke, Ph.D. outlines reasons why Americans should not dismiss the importance of Canadian oil exports, particularly oil sands.
The International Energy Agency (IEA) expects tar sands to play an increasing role in the energy market over the next several decades, making Canada a necessary part of U.S. energy policy. The fact that Canada is an allied nation sharing the same values means that any proposal to expand trade with them needs to be taken very seriously.
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CA — Global Petroleum Survey 2011
Global Petroleum Survey 2011
Source: Fraser institute
The 2011 Fraser Institute Global Petroleum Survey presents the results of the Fraser Institute’s 5th annual survey of petroleum industry executives and managers regarding barriers to investment in upstream oil and gas exploration and production in various jurisdictions around the globe. The survey responses have been tallied to rank provinces, states, and countries according to the extent of the investment barriers. Those barriers, as identified by the survey respondents, include high tax rates, costly regulatory schemes, and security threats. A total of 502 respondents representing 478 companies completed the survey questionnaire this year, providing sufficient data to evaluate 135 jurisdictions. This compares with the 2010 survey, in which 133 jurisdictions were rated, and the 2009 survey, in which 143 jurisdictions were rated. The exploration and development budgets of these participating companies totaled about $300 billion in 2010, which represents more than 60 percent of global upstream expenditures last year. The jurisdictions were assigned scores for each of 17 factors that affect investment decisions. The scores are based on the proportion of negative responses a jurisdiction received. The greater the proportion of negative responses for a jurisdiction, the greater were its perceived investment barriers and, therefore, the lower its ranking.
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In America’s National Interest – Canadian Oil
In America’s National Interest – Canadian Oil
Source: Fraser Institute
Attempting to restrict American imports of Canadian oil is a mistake that ignores both the reality of US dependence on imported oil, as well as the only major alternative sources of such oil—repressive governments that restrict civil, political, and economic freedoms.
The study points out that Canada now provides more oil to America than all the Persian Gulf countries combined, even though America imports 5.5 million more barrels of oil daily than it did in 1973.
Also, in 2009, the US relied on Persian Gulf countries for 14.4% of its oil imports, down from 24.5% of all US oil imports in 1979. In contrast, Canada supplied the United States with 21.2% of its oil imports in 2009, an increase from the 6.4% Canada supplied in 1979.
In addition to the reality of American oil demand and imports, this report measures how major oil-producing jurisdictions around the world, defined as those that produce more than 250,000 barrels of oil daily, perform on 17 comparisons of civil, political, and economic freedoms. The comparison includes eight measurements specific to women’s freedoms. A total of 38 countries, from five continents, are compared.
For example, with the exception of Norway, Canada is the only major oil-exporting country that scores highly on all measurements of civil, political, and economic freedom, including the rights of women to full career, medical and travel choices; on media freedom, religious freedom, and property rights, as well as on other measurements such as judicial independence and relative freedom from corruption.
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Barriers to investment in North American electricity infrastructure will saddle consumers with higher electricity costs
Barriers to investment in North American electricity infrastructure will saddle consumers with higher electricity costs
Source: Fraser Institute
North America’s electricity infrastructure needs close to $1 trillion (US) in investment over the next decade to meet the growing needs of Canada, the United States, and Mexico, according to a new report from the Fraser Institute, Canada’s leading public policy think-tank.
But unless governments remove or lower barriers that limit investment in expanded electric generation, transmission, and distribution facilities, consumers will likely see power rates jump, the report warns.
“Population and economic growth, as well as the production of new and more electricity-consuming products such as electric cars, mean that significant investment in new electric generation, transmission, and distribution infrastructure will be needed in the near future,” said Gerry Angevine, Fraser Institute senior economist and co-author of North American Electricity: Escalating Prices Possible Unless Infrastructure Investment Barriers Are Eased.
“Unfortunately, numerous obstacles to investment are hindering not only expansion of electric generation capacity throughout North America but also development of the required additional infrastructure needed to transport power from new generation sites to the end users.”
The report points out that electric generation capacity in North America is projected to increase by eight per cent, or 102,291 MW, by 2020 compared to current levels. The need to connect wind power and hydroelectric capacity being built in remote regions to consumption centers will add to investment requirements, including additional international, cross-border connections.
To ensure reliability as electricity production and consumption increases, interregional transmission connections throughout North America will need to be strengthened. The report also notes that the deployment of new smart-grid, energy efficiency, and other demand-side management technologies will mean a greater share of electricity infrastructure investment will be allocated to distribution.
Tax Freedom Day falls on June 6 as Canadians work an extra two days in 2011 to pay taxes
Tax Freedom Day falls on June 6 as Canadians work an extra two days in 2011 to pay taxes
Source: Fraser Institute
Tax Freedom Day, the day when Canadians start working for themselves after paying off the total tax bill imposed on them by all levels of government , falls on Monday, June 6, two days later than in 2010, according to the Fraser Institute’s annual Tax Freedom Day calculations.
But the report also warns that Tax Freedom Day would come 16 days later, on June 22, if governments paid for their current levels of spending with additional taxes, instead of running deficits.
“Finance Minister Jim Flaherty, who coincidentally is scheduled to deliver the federal budget on Tax Freedom Day, should put forth an aggressive plan that balances the budget within two years through spending cuts. This would provide the fiscal room for a multi-year plan to reduce taxes,” said Niels Veldhuis, Fraser Institute senior economist and co-author of Canadians Celebrate Tax Freedom Day on June 6, 2011.
“Today’s deficits must one day be paid for by taxes. The longer the government delays balancing its books, the more likely it is that Tax Freedom Day will fall later in the year.”
