Proposal looks good on paper but could fail in
practice
During B.C.’s 2013
election campaign, at a conference of energy economists in Washington, D.C., I
spoke about how one of our politicians was promising huge benefits during the
next decades from B.C. liquefied natural gas exports to eastern Asia. These benefits
included lower income taxes, zero provincial debt, and a wealth fund for future
generations. My remarks, however, drew laughter. Later, several people
complimented my humour.
Why this reaction?
The painful reality is that my economist colleagues smirk when people
(especially politicians) assume extreme market imbalances will endure, whereas
real-world evidence consistently proves they won’t. For B.C. Premier Christy
Clark to make promises based on a continuation of today’s extreme difference
between American and eastern Asian gas prices was, to be kind, laughable.
