Alberta Separation Could Cost Up to $170 Billion in First Five Years

A new report from the University of Calgary's School of Public Policy has shed light on the potential costs and consequences of Alberta separating from Canada.

The report, which was commissioned by the government, suggests that establishing an independent Alberta would be a costly and drawn-out process, with estimated costs ranging from $50 billion to $170 billion in the first five years following separation.

The report outlines two scenarios: a 'smooth' option where Canada largely accommodates the province's secession, and a 'difficult' scenario where Canada takes on a more adversarial stance and draws out the process. Under both scenarios, Alberta would face significant costs in the short term, including nearly $800 in additional taxes per person over the first five years.

The report also notes that an independent Alberta would face challenges in its trade and diplomatic relations with other countries, particularly when it comes to the energy sector. The authors warn that separation could make Alberta more dependent on shipping oil through the US, which may be cooperative or try to take advantage of Alberta's lack of other options.