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Constitutional Crisis, The Economics of Environment, and Resources Development in Western Canada

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  • G. Cornelis van Kooten
  • Anthony Scott

Abstract

This paper examines the assignment of functions over natural resources and environment between the federal and provincial governments using the Breton-Scott (1978) approach to the optimal assignment of functions and, alternatively, studying the actual policy outcomes under the existing assignment of powers. On theoretical grounds, provincial control over natural resources is warranted as long as the external costs imposed on other jurisdictions are small, but the theoretical approach does not unequivocally assign powers to either the provinces or Ottawa. In practice, as illustrated by examples, natural resource policies are driven not by concern over social costs and benefits, but by political considerations that impose added costs on the economy.

Suggested Citation

  • G. Cornelis van Kooten & Anthony Scott, 1995. "Constitutional Crisis, The Economics of Environment, and Resources Development in Western Canada," Canadian Public Policy, University of Toronto Press, vol. 21(2), pages 233-249, June.
    • Handle: RePEc:cpp:issued:v:21:y:1995:i:2:p:233-249
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    References listed on IDEAS

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    1. Browning, Edgar K, 1987. "On the Marginal Welfare Cost of Taxation," American Economic Review, American Economic Association, vol. 77(1), pages 11-23, March.
    2. Kirby, Michael G. & Blyth, Michael J., 1987. "Economic Aspects Of Land Degradation In Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(2), pages 1-21, August.
    3. D. Peter Stonehouse & Martin Bohl, 1990. "Land Degradation Issues in Canadian Agriculture," Canadian Public Policy, University of Toronto Press, vol. 16(4), pages 418-431, December.
    4. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-487, May.
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    Cited by:

    1. Anthony Scott, 2001. "Economists, Environmental Policies and Federalism," The State of Economics in Canada: Festschrift in Honour of David Slater, in: Patrick Grady & Andrew Sharpe (ed.),The State of Economics in Canada: Festschrift in Honour of David Slater, pages 405-449, Centre for the Study of Living Standards.

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