Carney and Hodgson's Carbon Capture Conundrum Contradicts Basic Economics

Canada's Prime Minister Justin Carney and Energy Minister Tim Hodgson have been making statements that defy basic economic laws, according to the Fraser Institute. They claim that increasing costs through 'carbon capture' and a higher industrial carbon tax will make Canada more energy competitive.

Carey has an impressive background in economics, having studied at Harvard and Oxford Universities, and working at the Bank of Canada and the Bank of England. Hodgson also has a strong resume, with an MBA from Western University and experience in global finance.

However, experts say that increasing costs will actually deter investment in Canada's energy sector. The cost for 'decarbonizing' oil in Alberta via carbon capture is between $17 to $23 per barrel, which would lower companies' profitability and deter investors.

The industrial carbon tax is set to increase to $170 per tonne, which would add even more costs to the industry. This could potentially offset some of the cost of carbon capture, but it's still a significant burden for companies.