The Impact of fossil fuels subsidies in Canada during the time period 2016-2022
DOI:
https://doi.org/10.58445/rars.700Keywords:
Economy, Canada, Fossil fuels, Subsidies, Microeconomics, Macroeconomics, change, intervention, policiesAbstract
In recent years climate change been placed as a priority for governments, institutions and individuals all over the world. By using a combination of quantitative and qualitative research methods, this study examines the extent to which these subsidies have impacted Canada's economy and stakeholder in the previous six years. This analysis will be done through an economic sense in order to further understand how economics is correlated with social factors.
The research findings reveal the role governments play when intervening in the economy, and the micro and macro effects that they can have. On one hand, these subsidies have been crucial in sustaining economic growth, employment, and international competitiveness. However, they have also perpetuated the environment and members of society through pollution and any other spillover costs associated with the negative externality of production, such as a slower transition to renewable energy. Although Canada has committed to phase out fossil fuels by 2030 and is attempting to reach this goal, it is also important to analyze past trends in order to predict where their economy and society may be headed in future years. Ultimately, this study contributes to the ongoing global discourse surrounding fossil fuel subsidies.
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