Pipeline's Economic Benefits May Fall Short of Government Estimates

A new pipeline to the West Coast could boost Canada's and Alberta's GDP, but a recent report from TD Economics suggests that the actual impact may be lower than forecasted.

The government analysis predicts a 0.6 per cent increase in national economy by the 2040s and 3.5 per cent in Alberta's, but the economists at TD Economics say these figures should be viewed as 'proposal-stage estimates' from proponents and governments with a clear interest in advancing development.

Using more conservative assumptions, they estimate that the increase could be around 0.3 per cent nationally and two per cent provincially.

The pipeline, to be developed by Crown-owned Trans Mountain Corp., would boost Canada's oil exports by 20 per cent and more than double what currently goes overseas on tankers to Asia.