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The Alberta government has launched a campaign to inform Canadians about the negative impacts of the federal cap on greenhouse gas (GHG) emissions in the oil and gas sector, which exempts the other three-quarters of the economy which emit, including transport, buildings. and heavy industry.

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According to Alberta Premier Danielle Smith, the cap will “kill jobs” and lead to “economic and societal decline” for all Canadians – and she’s right. Any policy that harms Alberta’s economy has consequences for all of Canada.

Of course, this isn’t Trudeau’s first policy that has damaged the sector. The list includes Bill C-69 (which imposes complex, uncertain and onerous review requirements on large energy projects), Bill C-48 (which bans large oil tankers off the north coast of British Columbia and limits access to Asian markets), “clean fuel” standard regulations”, many “net zero” targets, etc.

Again, while these policies disproportionately impact Albertans, they impact all Canadians because of Alberta’s role in the federation. In our current system, Ottawa collects various taxes from Canadians across the country and then redistributes the money for programs such as equalization and employment insurance.

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For comparison, from 2007 to 2022 (the latest data period available), Albertans contributed $244.6 billion more in taxes and other payments to the federal government than they received in federal spending, more than five times more than British Columbians or Ontarians. The other seven provinces received more in federal spending than they contributed to federal revenues. In other words, Albertans are by far the largest net contributors to Ottawa’s coffers.

The large net contribution of Albertans reflects the province’s relatively young population (fewer retirees), higher employment rates, higher average incomes and a relatively strong economy.

Alberta’s relative economic strength is not new. From 1981 to 2022, the province experienced the highest average annual economic growth rate in Canada. In 2022, Alberta accounted for 17.9% of Canada’s total economic growth, despite being home to only 11.6% of the country’s population. That same year, Alberta created nearly one in five private sector jobs in Canada. In fact, Alberta was one of only two provinces (along with Nova Scotia) where private sector employment growth (including self-employment) exceeded sector employment growth public over the last five years (2019 to 2023).

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Alberta’s prosperity, which helps fund other provinces, may explain why 56,245 more Canadian residents moved to Alberta than left it in 2022 – a much higher net influx than any other province. For decades, Alberta has provided economic opportunities to Canadians from other provinces looking to relocate.

Albertans continue to contribute more to the federation than Canadians in other provinces due to Alberta’s relatively strong and prosperous economy. And Canadians are taking advantage of the economic opportunities offered by Alberta. With this in mind, the Trudeau government should stop imposing economically damaging policies on the province – because it costs not only Albertans, but all Canadians.

Tegan Hill is Alberta Director at the Fraser Institute

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