Connect with us
[bsa_pro_ad_space id=12]

Economy

The case against Net Zero 2050

Published

32 minute read

From Energy Talking Points

By Alex Epstein

Every “net zero by 2050” myth, refuted


Fossil fuels expert Alex Epstein shares everything you need to know about fossil fuels and what the world would really look like if we were “net zero” by 2050.

Alex Epstein is a philosopher and energy expert who argues that “human flourishing” should be the guiding principle of industrial and environmental progress. He is the author of the New York Times bestseller, “The Moral Case for Fossil Fuels,” and his latest book, “Fossil Future.”


For months I have been eagerly anticipating a scheduled debate I had at the University of Syracuse on “net zero by 2050” with climate catastrophist and net-zero advocate Tom Rand.

Unfortunately, due apparently to some sort of weird contractual issue between Tom’s agent and the university, Tom did not make it to the debate

Since I was supposed to be in a debate, but there was no one to debate, I thought the best I could make of the situation would be to give a speech refuting every single argument for “net zero by 2050” that Tom and others make. It ended up being one of my favorite speeches ever; you can watch it here. We’ve also embedded the video below.

Below I have included all the “net zero” myths I covered , and then some. I think you’ll find them, along with the positive points about energy freedom, very valuable.


Myth: The best policy toward CO2 emissions is “net zero by 2050.”

Truth: Net-zero policies have been catastrophically destructive when barely implemented and would be apocalyptically destructive if fully implemented.

They should be abandoned in favor of energy freedom policies.

How to think about the right policy toward fossil fuels and their CO2 emissions

  • What are “net zero by 2050 policies”?Government (coercive) actions whose primary and binding goal is the net-elimination of CO2 (and other GHG) emissions, whose number one source is fossil fuel use, by 2050.

    In practice “net zero” means: rapidly eliminate most fossil fuel use.

  • One “net zero” policy is an extremely high “carbon tax,” like “$1000/ton.”This would mean, in practice:
    • 3-4 times higher prices for gasoline in Texas
    • 9 times higher electricity prices in West Virginia
    • 4-5 times higher prices for heating with natural gas
  • What are “energy freedom policies”?Government actions to protect the ability of producers to produce all forms of energy and consumers to use all forms of energy, so long as they don’t engage in reasonably preventable pollution or endangerment of others.
  • Energy freedom policies include:
    • Protecting the freedom to develop fossil fuels and other forms of energy. E.g., deep geothermal development.
    • Protecting the freedom to use fossil fuels and all other forms of energy. E.g., “decriminalizing nuclear.”
  • Interesting: the 2 biggest instances of CO2 reduction have come from energy freedom policies:
    • Nuclear: Freedom led to cost-effective and scalable nuclear power until the “green” movement virtually criminalized it.
    • Gas: Freedom led to significant substitution of gas vs. coal.
  • Myth: Net-zero policies are new and exciting.
    Truth: Net-zero policies have caused catastrophic energy shortages even with minuscule implementation. Just by slowing the growth of fossil fuel use, not even reducing it, they have caused global energy shortages advocates didn’t warn us of.
  • Minuscule net-zero policies causing huge problems:
    • US: Frequent power shortages (and some disastrous blackouts) after shutting down fossil fuel power plants. E.g., CA
    • EU: Deadly fossil fuel dependence after restricting domestic fossil fuel industry
    • Poor nations: Can’t afford fuel due to global restrictions1 Analysis-Fuel crisis cuts electricity in Bangladesh
  • The root problem with “net zero by 2050”It violates a basic principle of rational thinking, which is that when evaluating what to do about a product or technology—e.g., prescription drug—you need to carefully weigh the benefits and side-effects of your alternatives.
  • Myth: If there are negative climate side-effects of continuing fossil fuel use we should get them to net-zero as soon as possible.Truth: We should carefully weigh them against the benefits that come with them, including positive climate side-effects, climate mastery abilities, and many broader benefits.
  • It is particularly crucial to weigh any negative climate side-effects of continuing fossil fuel use against the climate mastery benefits that come with them, as those benefits can neutralize or overwhelm negatives.E.g., more energy powering heating and cooling, irrigation, infrastructure-building, etc.
  • Example of fossil-fueled climate mastery overwhelming negative impacts: Drought.Any contribution of rising CO2 to drought has been overwhelmed by fossil-fueled irrigation and crop transport, which have helped reduce drought deaths by over 100 times over 100 years as CO2 levels have risen.2 Atmospheric Carbon dioxide vs Death rate from drought
  • An irrefutable method for thinking about policy toward fossil fuels and their CO2 emissions1 Factor in broad benefits
    2 Factor in climate mastery benefits
    3 Factor in positive and negative climate side-effects (from rising CO2)

    No net-zero advocate has refuted it, yet none follow it.

  • How net-zero advocates fail to weigh benefits and side-effects of fossil fuels
    • Factor in broad benefits – Deny or trivialize
    • Factor in climate mastery benefits – Deny
    • Factor in positive and negative climate side-effects – Deny or trivialize positives, Catastrophize negatives = Overstate, Deny mastery
  • If we follow the irrefutable principles of weighing benefits and climate side-effects of continuing fossil fuel use, using undeniable facts and mainstream science, it is obvious that “net zero by 2050” would be apocalyptically destructive and that the right path forward is energy freedom.

Applying fossil fuel policy principle 1: Factoring in the broad benefits of continuing fossil fuel use

  • Myth: The benefit of continuing fossil fuel use is trivial at best.Truth: The benefit of continuing fossil fuel use is a world in which 8 billion people have the energy they need to survive and flourish—vs. an energy-starved world in which most of the world’s 8 billion people suffer from poverty and premature death.
  • Myth: There are no real benefits of continuing fossil fuel use because it can be rapidly replaced by mostly solar and wind.Truth: fossil fuels are and for decades will remain uniquely cost-effective: affordable, reliable, versatile—on a scale of billions of people in thousands of places.
  • Myth: Fossil fuels are being rapidly replaced in an “energy transition” to solar and wind.Truth: Fossil fuel use is 80% of the world’s energy and still growing despite 100+ years of aggressive competition and 20+ years of political hostility and massive solar and wind favoritism.3 Primary Energy Consumption by fuel
  • Myth: Fossil fuel use will soon rapidly decline because countries know “green” energy will be cheaper.Truth: Countries that care most about cheap energy are pro-fossil fuels.

    E.g., China, which uses mostly coal to produce “green” tech, has over 300 planned new coal plants designed to last over 40 years.

  • Myth: Solar and wind are growing fast by outcompeting fossil fuels with superior economics.Truth: Solar and wind are growing fast only when given massive government preferences—mandates, subsidies, and no penalty for unreliability—along with crippling government punishments of fossil fuels.
  • Myth: Solar and wind are now cheaper than fossil fuels.Truth: For the overwhelming majority of the world’s energy needs, solar and wind either can’t do what fossil fuel can—e.g., non-electricity energy uses such as airplanes or cargo ships—or are far more expensive.
  • Myth: Solar and wind electricity is getting so cheap that will lead to rapid electrification of the 4/5ths of today’s energy that is not electricity.Truth: When you factor in the full cost of the 24/7 life support that unreliable solar and wind electricity need, they are far more expensive.4 ERCOT Demond and generation by solar and wind Feb 7 - 14
  • Myth: Solar and wind plus batteries will inevitably be super-cheap because of efficiency increases driving lower production costs and higher performance.Truth: Their cost is astronomical today and has a large mining component whose costs will increase if scaled artificially quickly.5 1 day of world energy
  • Even relatively mild increases in demand for critical minerals in recent years have led to scaling issues and cost increases—reversing a trend of falling prices that solar and wind advocates pretended would last forever.What will rapid scaling plus anti-mining policies do?6 Monthly primary commodity prices
  • Myth: Rapidly eliminating fossil fuels will make us more energy-secure.Truth: We’d be far less energy secure because 1) we’d have drastically less energy, period, and 2) we’re far more dependent on China for key components of solar, wind, and batteries than we are on Russia for fossil fuels.7 Geographical distribution of the global EV battery supply chain
  • Myth: Reliable alternatives to fossil fuels, such as nuclear and geothermal, can rapidly replace fossil fuels.Truth: While these industries have potential that we should unleash, they are generations away from providing, on a global scale, energy that’s affordable, reliable, and versatile.8 Global nuclear Electricity genration
  • Myth: Academics have rigorous plans to replace fossil fuels with mostly solar and wind
    Truth: All these “plans” involve 2 absurdities: 1. Unprecedented mining and construction in today’s anti-development political environment will be cheap.
    2. Untested schemes will be cheap, everywhere, the first time.
  • “Net zero” plans to scale solar and wind involve more than doubling the supply of half a dozen major mined materials per decade.I know of no example, ever, of any major mined mineral doubling that fast, even with pro-development governments—let alone today’s anti-development governments.9 Battery-related minerals vs Renewables-and network-related minerals
  • All “net zero” by 2050 plans involve totally untested schemes, both for
    1. Electricity: Solar and wind somehow being the basis of cheap, reliable electricity.
    2. Other energy: Myriad electric or hydrogen vehicles (e.g., planes, ships) that are nowhere near commercial reality.10 The vision proposed by studies in refrences
  • Myth: Carbon capture will soon allow us to have global cost-effective energy without CO2 emissions.Truth: While cost-effective carbon capture is worth exploring (e.g., using CO2 for industry or agriculture), there’s no evidence that most emissions can be captured cheaplyInflation Reduction acts pays $85/ton for CO2 capture
  • Summary: Fossil fuels are, and for decades will remain, uniquely cost-effective: affordable, reliable, versatile—on a scale of billions of people in thousands of places.

    Policy implications:
    • Energy freedom —> global cost-effective energy
    • Net zero —> very little cost-effective energy
  • When “net zero by 2050” advocates are forced to concede that their policies would (at minimum) dramatically reduce the availability of energy, they revert to the myth that cost-effective energy is only of modest importance compared to CO2 emissions reductions.
  • Myth: Cost-effective energy isn’t nearly as important as CO2 reductions, which affect Earth’s livability.Truth: The cost-effectiveness of energy determines Earth’s livability because it allows us to use machines turn a naturally inhospitable planet into an abundant and safe place.11 Alexandria Ocasio-Cortez, exhibiting the view
  • Myth: The Earth will be a highly livable place—stable, sufficient in resources, and safe—as long as we don’t impact it too much.Truth: Earth is very inhospitable—dynamic, deficient, dangerous—unless we have the productive ability to transform and impact it to be abundant and safe.
  • Myth: Energy is just one of many factors affecting to what extent we can flourish on this naturally inhospitable planet.Truth: The cost-effectiveness of energy is fundamental to human flourishing because it determines our ability to use machines to become super-productive.
  • Myth: Fossil Fuels aren’t the reason the Earth is so livable now—it’s much more medical care, sanitation, scientific progress, and technological progress.Truth: Cost-effective fossil fuels underlie them all: freeing up time for them, powering their machines, and providing raw materials.12 Global CO@ emission vs World expectancy and World GDP per capita vs World population
  • Myth: The benefits we’ve gotten from uniquely cost-effective fossil fuel energy are modest at best compared to their downsides.Thanks to our fossil-fueled productivity, longevity and income have been skyrocketing, with extreme poverty (<$2/day) plummeting from 42% in 1980 to less than 10% today.13 Share of people living on less than $1.90 per day
  • Myth: Rapidly eliminating uniquely cost-effective fossil fuel energy won’t be that bad because we can save a lot energy via efficiency.Truth: Not only could people in the wealthy world benefit from more energy, the vast majority of the world needs much more energy to get out of poverty.
  • The desperate need for far more of the global-scale cost-effective energy that only fossil fuels can provide near-term:
    • 1/3 of the world uses wood and animal dung for heating and cooking.
    • 3 billion use less electricity than a typical American refrigerator.14 Usage of traditional biomass
  • Myth: Poor countries will “leapfrog” fossil fuels and go right to solar and wind.Truth: No rich country has been able to abandon fossil fuels even at huge cost, while every dramatic increase in wealth has involved fossil fuels: Japan, Singapore, South Korea, China, etc.

    Poor countries are not guinea pigs.

  • Any invocation of “efficiency” to pretend that the world doesn’t need far more energy amounts to cruel indifference to the enormous energy needs of the world’s poorest people.
  • Summary: Fossil fuels are a near-term irreplaceable source of the cost-effective energy humans need to flourish.Policy implications
    • Energy freedom —> Billions more will have the opportunity to flourish.
    • Net zero —> Billions of energy-starved people plunge into poverty and early death.

Applying fossil fuel policy principle 2: Factoring in the climate mastery benefits of continuing fossil fuel use

  • Myth: Our weak “adaptation” abilities are already overwhelmed by climate changes.Truth: Our fossil-fueled climate mastery abilities have completely overwhelmed any negative changes plus huge natural danger—meaning we can overcome almost any conceivable future climate challenge.
  • Myth: We are more endangered than ever by climate because of fossil fuels’ CO2 emissions.Truth: We have a 98% decline in climate disaster deaths due to our enormous fossil-fueled climate mastery abilities: heating/cooling, infrastructure-building, irrigation, crop transport.15 Atmospheric CO2 vs Climate-related disaster deaths
  • Myth: Climate-related disaster X shows that fossil fuels are making climate unlivable.Truth: If we look at trends, not anecdotes, the drastic decline in extreme weather deaths shows that fossil fuels have made our naturally dangerous climate more livable than ever.16 World rate from storms vs G7 death rate from storms
  • Myth: The decline in climate disaster deaths is due to storm warning systems, not fossil fuels.Truth:
    1. Fossil fuels power storm warning and evacuation systems.
    2. Drought, not storm, deaths are the leading source of climate death reduced.17 Atmospheric CO2 vs Death rate from drought
  • Myth: Even if climate-related disaster deaths are down, climate-related damages are way up, pointing to a bankrupting climate future.Truth: Even though there are many incentives for climate damages to go up—preferences for riskier areas, government bailouts—GDP-adjusted damages are flat.18 Global weather losses as percent of global GDP: 1990-2022
  • Myth: Adaptation to future climate changes is expensive, while “mitigation”—avoiding CO2 emissions—is relatively cheap.Truth: We’ve seen that using fossil fuels we can be ever-wealthier and safer from climate, vs. even minor “mitigation” has caused deadly energy shortages and poverty.19 Expensive energy may have killed more Europeans than covid-19 last winter
  • Myth: Even if we’re safe from climate now, we can expect future emissions to lead to disaster.Truth: Since today’s unprecedented safety exists after 100+ years of rising CO2, and with 1° C warming, we should be skeptical that further CO2 rises will somehow overwhelm us.
  • Summary: A crucial benefit of uniquely cost-effective fossil fuel energy is enormous climate mastery abilities.Policy implications
    • Energy freedom —> We’ll get ever-better at mastering climate danger, natural or manmade.
    • Net zero —> Climate danger will dramatically increase.

Applying fossil fuel policy principle 3: Factoring in the positive and negative climate impacts of continuing fossil fuel use (with precision)

  • Myth: Mainstream science shows that rising CO2 is an “existential threat” that will soon cause global catastrophe and then apocalypse.Truth: Mainstream science shows that rising CO2 levels will lead to levels of warming and other changes that we can master and flourish with.
  • Myth: Media “expert” claims of future climate disaster are likely to be credible.Truth: Such claims are only credible if the expert factors in climate mastery (which almost none do) and does not engage in the popular practice of distorting climate science for effect.20 Category 4 and 5 Atlantic hurricanes since 1980 Global Major Hurricane frequency
  • Myth: If mainstream science concludes that we will experience more warming, storm intensity, or sea level rises, that means catastrophe or worse.Truth: Given climate mastery, catastrophe could only occur with changes that are a total difference in kind from rising CO2 so far.
  • Climate mastery is so powerful that for CO2 emissions to be apocalyptic enough to justify rapid fossil fuel restriction, let alone elimination, they’d need to have unprecedented impacts, such as
    • Seas rising feet per decade
    • 2X more powerful storms

    Science shows nothing like this.

  • Myth: Future warming is ominous because heat-related death is already such a catastrophic problem.Truth: Even though Earth has gotten 1°C warmer, far more people still die from cold than heat (even in India)! Near-term warming is expected to decrease temperature-related mortality.21 Heat and cold Related Deaths, 2000-2019
  • Myth: Future warming is ominous because it will be worst in hot areas.Truth: The mainstream view in climate science is that more warming will be concentrated in colder places (Northern latitudes) and at colder times (nighttime) and during colder seasons (winter). Good news.22 Difference from Average temperature
  • Myth: Future warming will accelerate as CO2 levels rise.Truth: Mainstream science is unanimous that the “greenhouse effect” is a diminishing effect, with additional CO2 leading to less warning.
    Even IPCC’s most extreme, far-fetched scenarios show warming leveling off.23 
  • Myth: Climate science says Earth will be a scorching desert, like “Mad Max.”There is no Mad Max scenario, even considering emissions and warming higher than we can expect. Agricultural productivity is estimated to increase massively under a 4-5°C warming scenario.24 Global crop production Crop yield decreases facts
  • Myth: Even if we won’t be overwhelmed by warming driven by rising CO2, we’ll be overwhelmed by other climate changes, such as sea level rises and storms.Truth: Even the IPCC, with many catastrophist tendencies, projects climate changes that would be masterable with fossil fuels.
  • Myth: We face catastrophically rapid sea level rises, which will destroy and submerge coastal cities.Truth: Extreme UN sea level rise projections are just 3 feet in 100 years. Future generations can master that. (We already have 100M people living below high-tide sea level.)25 Global mean sea level change relative to 1900
  • Myth: Hurricane intensity is expected to get catastrophically higher as temperatures rise.Truth: Mainstream estimates say hurricanes will be less frequent and between 1-10% more intense at 2° C warming. This is not at all catastrophic if we continue our fossil-fueled climate mastery.26 Tropical cyclone intensities Globally are projected to increase
  • Myth: We face catastrophic increases in dangerous wildfires, an “Earth on fire.”While the media increasingly reports on fires and draws connections to warming, the world burns less than 20 years ago and far less than 100 years ago. Fire danger primarily depends on human mastery.27
  • Myth: Science says that if we hit 2° C warming, let alone beyond, since the 1800s, we face catastrophe followed by apocalypse.Truth: The 2° C number is activist fiction. The climate mastery abilities that have made life far better through 1° C warming so far will continue to keep us safe.
  • Summary: Continuing fossil fuel use will lead to levels of warming and other changes that we can master and flourish with.Policy implications
    • Energy freedom —> CO2 levels rise, life continues to get better and better
    • Net zero —> CO2 levels rise more slowly, billions of lives ruined
  • Energy freedom policies are more likely to lead to long-term emissions reductions.
    Because they accelerate the rate at which nuclear and other alternatives become globally cost-competitive.(The only moral and practical way to reduce global emissions.)28 China no closer to peak coal despite record renewable capacity additions and India rejects net zero corban emissions target, says pathway more important
  • Net zero by 2050, by failing to recognize the unique benefits of fossil fuels, is catastrophic when barely implemented and would be apocalyptic if fully implemented.Energy freedom gives billions more people the energy they need to flourish and unleashes truly cost-effective alternatives.

    QED

References


  1. Reuters – ANALYSIS-Fuel crisis cuts electricity in Bangladesh, sparking energy debate
  2. UC San Diego – The Keeling CurveFor every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%–from an average of 247 per year during the 1920s to 2.5 per year during the 2010s.

    Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).

    Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, population is assumed to have grown at a steady rate.

    Population estimates for the 2010s come from World Bank Data.

  3. Energy Institute – Statistical Review of World Energy
  4. U.S. Energy Information Administration – Hourly Electric Grid Monitor
  5. Global primary energy consumption in 2022 was 604.04 EJ or about 460 TWh (= 460,000,000 MWh) per day.
    According to Tesla Megapacks cost about $413,000 per MWh. Tesla – Order MegapackEnergy Institute – Statistical Review of World Energy

  6. Energy Monitor – Data shows how the cost of energy transition minerals has soared since 2020
  7. Financial Times – How China is winning the race for Africa’s lithium
  8. Energy Institute – Statistical Review of World Energy
  9. IEA – The Role of Critical Minerals in Clean Energy Transitions“Meeting such unprecedented mineral demands will require opening far more mines than now exist, and far faster than at any time in history. (The global average time from the qualification of a property to bringing a new mine into operation is 16 years.)”
    Mark Mills – The “Energy Transition” Delusion A Reality Reset

  10. Clack et al. (2017) – Evaluation of a proposal for reliable low-cost grid power with 100% wind, water, and solar
  11. USA Today News – ‘The world is going to end in 12 years if we don’t address climate change,’ Ocasio-Cortez says
  12. Maddison Database 2010 at the Groningen Growth and Development Centre, Faculty of Economics and Business at University of GroningenWorld Bank Data

    Scripps Institution of Oceanography – The Keeling Curve

  13. World Bank Data
  14. IEA – Access to affordable, reliable, sustainable and modern energy for allRobert Bryce – A Question of Power: Electricity and the Wealth of Nations

  15. UC San Diego – The Keeling CurveFor every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%–from an average of 247 per year during the 1920s to 2.5 in per year during the 2010s.

    Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).

    Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, population is assumed to have grown at a steady rate.

    Population estimates for the 2010s come from World Bank Data.

  16. Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).Population estimates come from World Bank Data.

  17. UC San Diego – The Keeling CurveFor every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%–from an average of 247 per year during the 1920s to 2.5 in per year during the 2010s.

    Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).

    Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, population is assumed to have grown at a steady rate.

    Population estimates for the 2010s come from World Bank Data.

  18. Roger Pielke Jr. – Weather and Climate Disaster Losses So Far in 2022, Still Not Getting Worse
  19. The Economist – Expensive energy may have killed more Europeans than covid-19 last winter
  20. New York Time – Ian Moves NorthRyan Maue – Global Tropical Cyclone Activity

  21. Zhao et al. (2021)Bjorn Lomborg – Climate Change Saves More Lives Than You’d Think

  22. NOAA – Climate change rule of thumb: cold “things” warming faster than warm things
  23. IPCC AR6, WG1, chapter 4
  24. Our World in Data – Data Explorer: IPCC ScenariosPatrick Brown – The IPCC Report on the Impacts of Climate Change is Depressing; But not for the reasons you might think

  25. IPCC AR6, WG1
  26. NOAA – Global Warming and Hurricanes
  27. Roger Pielke Jr. – What the media won’t tell you about … Wildfires
  28. Reuters – Analysis: China no closer to peak coal despite record renewable capacity additionsReuters – India rejects net zero carbon emissions target, says pathway more important

    Alex Epstein – A pro-human, pro-freedom policy for CO2 emissions

 

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

A Rush to the Exits: It’s Not Just Immigration, Canada Has an Emigration Crisis

Published on

From the C2C Journal

By Scott Inniss
The Justin Trudeau government’s decade-long determination to drive immigration numbers ever-higher – a policy that public outcry now has it scrambling away from – has obscured a rather important and discouraging phenomenon: more and more people are choosing to leave Canada. Emigration is the flipside of the immigration issue – a side that has been largely ignored. With the best and brightest among us increasingly leaving for better opportunity elsewhere, this growing trend reveals Canada is no longer the promised land it once was. Using the most recently released data and analysis, Scott Inniss uncovers why so many are voting with their feet.

Elena Secara is planning a career change. And not a minor change. She’s planning on moving to a different country for the next stage of her working life.

Secara arrived with her husband and their two sons as immigrants from Romania in 2005. At that time, Canada was looking for good-quality newcomers to welcome and Romania was still struggling to pull itself out of the doldrums following its 1989 revolution. As an impressively educated couple – Elena was a bank economist while her husband Gabriel had trained as a mechanical engineer – who were both fluent in French, the Secaras’ prospects looked good. They landed in Montreal, eventually settling in the suburb of Vaudreuil in 2010.

“The quality of life is low here”: After 20 years of living and working in Canada, Romanian immigrants Elena Secara and her husband Gabriel are planning to move back to their home country, having grown disillusioned with Canada’s economic limitations. (Source of photo: Courtesy of Elena and Gabriel Secara)

But life in Canada never became quite what they had hoped. Elena could not find the kind of work she thought she would. She took a job as a business manager in a car dealership in 2006, where she has stayed on, while Gabriel hit the wall erected by many Canadian professional associations that often severely limits recognition of education and training in other countries. He took upgrading courses to have his professional degree recognized, but that still didn’t land him a job in his field. Gabriel eventually went to work in manufacturing, often pulling night shifts.

“We had to face the reality of economic life in Canada,” says Elena in an interview. “We have contributed and worked for 20 years in Canada. I have never been without a job. But with the income we can count on over the next few years, it does not allow us to live at a level we wish to live at. The quality of life is low here, and we cannot take it.” Elena became a Canadian citizen in 2009 but she’s planning to say goodbye to Canada in the next couple of years. One of her sons has already voted with his feet, and is now living in Romania.

The Secaras’ story is not unique. Every year tens of thousands of Canadians pull up stakes and start a new life elsewhere. They become emigrants, and their numbers have been rising. Recent debates over the Justin Trudeau government’s massive increase in immigration targets (which last month were scaled back a bit) have ignored the fact that about 100,000 people have been leaving Canada every year of late, undermining the very system the government is so keen to tout and costing the country some of its best and brightest. Many are like Elena – successful people who came to Canada, made it through the immigration system to become citizens, only to feel their ambitions were stymied and their dreams dashed, to grow disillusioned and, ultimately, to leave again.

For many, Canada is not the promised land, or even the type of country they thought it was.

The Outflow by the Numbers

While it is known that the flow of emigrants from Canada is increasing – and that the number-one destination is the United States – their exact number is elusive, so Canada estimates figures using data from international sources, including the U.S. Department of Homeland Security. (Source of photo: U.S. Customs and Border Protection)

The first thing that becomes obvious when looking at emigration is how imprecise the data is. Unlike more repressive regimes, or even the European Union, Canada has no exit controls. Emigrants can just leave – and Canadians can also take their money with them, as long as they pay their taxes – and so organizations like Statistics Canada can only make estimates. “Emigration is one of the most difficult flows [of people] to measure,” says Lorena Canon, an analyst at Statcan who studies migration, in an interview. She and other statisticians have to work with different sources of information, like tax records, lists of recipients of child welfare money, and foreign government agencies that keep records. “Because we know almost all [Canadian emigrants] go to the states, we use data from the U.S. Department of Homeland Security [on new arrivals to the U.S.],” she points out by way of example.

In a 2022 study entitled The Canadian diaspora: Estimating the number of Canadians citizens who live abroad, Canon and her co-author Julien Bérard-Chagnon acknowledged the lack of precision. “The numerous challenges associated with accurately measuring emigration and the significant conceptual differences in international data mean that the few sources that are currently available…provide very different numbers,” they write, in the bureaucratese of number-crunchers. Their study sorts through and analyzes the available data to estimate the number of Canadians living abroad in 2016 at between 2.9 million and 5.5 million, with a “medium numbers scenario” putting it at 4,038,700.

These are big numbers, the “medium” scenario equating to about 12.6 percent of the Canadian population that year (the latest for which this kind of analysis exists). Even if one excluded what the authors call “Canadian citizens by descent” – those born abroad to parents holding Canadian citizenship, who might be thought less connected to Canada – the country has still lost about 2 million citizens who used to live here. (The other two emigrant sub-categories are Canadian-born citizens, who comprise an estimated 33 percent of the nation’s global diaspora, and naturalized citizens, the remaining 15 percent.)

A 2022 Statistics Canada study put the number of Canadian citizens living abroad in 2016 under its “medium numbers scenario” at roughly 4 million, or 12.5 percent of the national population. (Sources: (table) Statistics Canada, 2022; (chart data) Statistics Canada, 2024)

And given that Canon advises there’s a margin of error of “perhaps up to 5 or 10 percent” in estimating numbers, and the fact – untracked by Statcan – that there are likely Canadian expats working illegally abroad who may not want to be counted, these are likely to be conservative estimates.

The numbers have also been rising in recent years. In its work analyzing the components of population growth, Statcan estimates the number of “emigrants” and “net emigrants” (which subtracts returnees) going back to the 1970s. Both numbers gradually rose into the 1990s, then stabilized to some degree. Emigration jumped significantly in 2016-2017, coinciding with a change in how Statcan calculates its figures. Since 2021-2022 it has been rising steadily, and in 2023-2024 more than 104,000 people left Canada.

Numbers from other sources tell a similar story. This year’s American Community Survey (ACS), conducted by the U.S. Census Bureau, put the number of people moving from Canada to the U.S. at 126,340 in 2022, up by 70 percent from a decade ago. About one-third of those are Americans who were returning home, but the number of Canadian-born immigrants to the U.S. was 50 percent higher than in pre-Covid times.

The Flow of Money, the Flow of People

A realistic interpretation of emigration numbers would include an observation of some historical trends. Although it’s true that for centuries emigrants tended to be poor, landless people desperate for a better life, or were fleeing oppression or famine, it’s not always the case today and certainly does not describe most Canadians currently pulling up stakes. In developed nations, the more prosperous people are typically the more mobile, and with rising wealth come greater means to move to other places.

Follow the money: Alex Whalen, an economist at the Fraser Institute, believes that “the precipitous decline in earnings [in Canada], relative to the U.S.” is helping drive Canadian emigration.

The trend also very likely reflects the globalization of commerce; as more people find themselves working for transnational corporations, they increasingly see the benefits in moving abroad. This is complemented by our era’s instant access to detailed information about nearly any place, even the world’s remotest and most obscure corners. That includes real estate prices, quality of schools, leisure activities – and, among the most important categories, tax levels. More and more Canadians have gained awareness that many other countries offer not only a more pleasing climate than Canada but an equal or better quality of life and some combination of lower taxes and lower prices.

When historians are discussing major past events – like a lot of people moving around – the conversation usually includes discussion of economic circumstances. Put bluntly, find the flow of money and you can explain the flow of people. Alex Whalen, an economist and director of Atlantic Canada Prosperity for the Fraser Institute, points to the earnings gap between Canada and the U.S. as a factor driving current emigration. Its recent report, Our Incomes Are Falling Behind: Earnings in the Canadian Provinces and US States, 2010-2022compared median per capita earnings in all 50 U.S. states and 10 Canadian provinces – and painted a depressing picture. Results in 2010 were worrisome enough: Alberta was the only Canadian province in the top 20. By 2022, all 10 Canadian provinces finished at the bottom of the ranking. Every province had become poorer, by that measure, than the lowest-earning American state.

“The precipitous decline in earnings, relative to the U.S. is deeply concerning, but not entirely surprising,” says Whalen in an interview. Canadian incomes have been lower than those in the U.S. for some time, he says, but it’s the dramatic nature of their recent relative decline that’s raising eyebrows. And it is not just relative to the U.S. Whalen points to growth rates in per capita gross domestic product (GDP) – how much a country produces per person – as evidence of Canada’s waning economic power. In another recent study, the Fraser Institute noted that Canada ranked third-lowest among 30 OECD countries by that measure between 2014 and 2022, losing ground to key allies and trading partners like the U.S., U.K. and Australia.

Comparing median per capita earnings in 50 U.S. states and the 10 Canadian provinces in 2010 versus 2022 reveals Canada’s dismal economic performance. (Source of charts: Fraser Institute, 2024)

Worse, perhaps, the OECD has projected Canada will rank dead-last among member countries in per capita GDP growth going out to 2060. GDP per capita is closely linked to productivity, which has been in a troubling decline in Canada, and to business investment, which has been moribund. Countries with rising per-capita GDP provide higher average wages and salaries because the capital investments that drive the higher productivity enable employers to pay more – and create greater competition for qualified labour.

“From a competitive perspective it is not surprising to see that people are on the move [out of Canada],” says Whalen, who notes that he is not an expert on emigration. Canada’s relatively high taxation rates, he says, exacerbate the problem: “High-income people, in particular, tend to be mobile, and sensitive to taxation and over-taxation.”

The high cost of living, particularly for housing, is also an increasingly large factor. A recent survey by Angus Reid reported that 28 percent of respondents were giving serious consideration to leaving their province of residence due to the increasing unaffordability of housing. Among those, 42 percent said they would move outside Canada. The overall cost of living, finding a better quality of life and improved access to health care also made the list of reasons to leave.

Canada’s poor productivity growth, partly due to sagging business investment, means sluggish growth in GDP per capita and lagging wages; add in heavy taxation, declining health care and the grim climate, and the decision to leave Canada becomes even easier. (Sources: (charts) TD Economics, 2024; (photos) Pexels)

And those most likely to leave are the people Canada should most want to keep. As the abovementioned 2022 Statcan study put it, emigrants “are younger, earn higher incomes, are more educated and often work in fields that require a high level of skill. The departure of people with these characteristics raises concerns about the loss of significant economic potential and the retention of a highly skilled workforce.”

Canada Becoming a Big Hotel

The notion that Canada is not so much a country as a large, open-air hotel has gained ground in recent years. Emigration can be seen as part of that phenomenon. Some of the people leaving Canada are people who recently arrived. A report from the Conference Board of Canada in partnership with the Institute for Canadian Citizenship (ICC), an advocacy group focused on integrating and celebrating new Canadians, sounds the alarm bells on the immigrant-turned-emigrant trend. Entitled The Leaky Bucket, the report notes that “onward” migration had been steadily increasing since the 1980s – but positively surged in 2017 and 2019 to levels 31 percent higher than the historical average. High levels of onward migration, the report notes, “Could undermine Canada’s strategy to use immigration to drive population and economic growth.”

An updated version of the report, shows that the numbers grew again in 2020, although the document speculates that the Covid-19 pandemic could have been a factor (even though the accompanying lockdowns and travel restrictions would seem to complicate the process of moving to another country). The report forecasts that 25,500 of the 395,000 planned permanent resident admissions in 2025 will have moved on by 2030.

“These are not desperate people fleeing destitution for the comfort of Canada’s generosity,” writes Daniel Bernhard, CEO of the ICC. “Rather, they are a globally coveted talent pool with global options. When we fail to retain newcomers, we are essentially helping them to contribute to another country’s success.” And these are the very people, Bernhard lamented in a recent column in the Globe and Mail, who are “by far most eager to hit the road.”

Another study from the ICC conducted with the polling firm IPSOS was equally alarmist. The Newcomer Perspective  surveyed more than 15,000 immigrants and found that 26 percent said they are likely to leave Canada within two years, with the proportion rising to more than 30 percent among federally selected economic immigrants – those with the highest scores in the points system. Clearly, many more people are planning to check out of Hotel Canada.

“Burgeoning disillusionment”: A 2023 report warns that even recent arrivals in Canada are turning around and leaving; “After giving Canada a try, growing numbers of immigrants are saying ‘no thanks,’ and moving on,” says Daniel Bernhard (right), CEO of the Institute for Canadian Citizenship. (Sources of photos: (left) The Canadian Press/Chris Young; (right) TVO today)

The top three reasons driving onward migration are all economic, led by the cost of housing, low salaries and general economic conditions. More than half of those surveyed said Canada falls short of their expectations as a place to get ahead financially. “While the fairy tale of Canada as a land of opportunity still holds for many newcomers,” Bernhard wrote in The Leaky Bucket, there is undeniably a “burgeoning disillusionment. After giving Canada a try, growing numbers of immigrants are saying ‘no thanks,’ and moving on.” It’s a particularly stark phenomenon considering that most immigrants have come from much poorer, less developed and often autocratic or unsafe nations; that these people find Canada – for decades considered the ultimate destination among those seeking a better life – to be such a disappointment that the best response is to leave is a damning indictment.

The same detachment from Canada can be seen in the number of immigrants who don’t even take the trouble to get their citizenship. Statcan highlighted the new trend in its February 2024 report, The decline in the citizenship rate among recent immigrants to Canada. In the mid-1990s, 65-70 percent of recent arrivals completed the process of becoming citizens (in 1996 it was even higher, 75.4 percent). By 2021 the proportion had fallen to 46 percent. Even accounting for the possible effects of the pandemic, which slowed the processing of citizenship applications, the citizenship rate declined at a faster rate from 2016 to 2021 than during any other five-year period since 1996.

The rising number of immigrants who don’t take the trouble to get their citizenship suggests an increasing detachment from Canada, quite possibly because the perceived value of becoming Canadian is not what it used to be. (Source of graph: Statistics Canada, 2024)

The drop was most dramatic among immigrants from non-Western nations, including East Asia (mostly China) and Southeast Asia. “This may be related to the increasing economic and international status of these regions,” the report speculates, “which may reduce the economic motivation of recent immigrants from these regions to acquire Canadian citizenship.” The value of becoming Canadian, it seems, is not what it used to be.

Canada Losing its Best and Brightest – Mostly to the U.S.

Canada, as every schoolchild learns, has thousands of kilometres of undefended border. There are places where people cross officially, at roads and airports. Some people think of these border crossings as gates. But they are not gates. They are revolving doors. A lot of people go through them, in both directions, every year.

“Revolving doors”: Canada’s border crossings with the U.S. have become gateways for those with marketable skills and high earning-power to leave the country. (Sources of photos: (left) ValeStock/Shutterstock; (right) oksana.perkins/Shutterstock)

When digesting the economic data, it becomes obvious that the flow of people out of the country is following the flow of money. People want better incomes, better prospects. It seems like stating the obvious, but sometimes the obvious must be stated. The ones leaving Canada for the U.S. are the ones in a position to do so: the ones with globally marketable skills, independent incomes or inherited wealth, who can easily start anew elsewhere. And the ones who have decent incomes are usually the ones who have the brains as well. Canada is losing its best and brightest. Instead of easing, Canada’s brain drain is almost certain to intensify. Whoever holds office in Ottawa over the next decade will be hearing about it; let’s hope they do something about it.

Political leaders often tout Canada as a land of immigrants. In 2021, more than 8.3 million people, or 23 percent of the population, were immigrants, the highest proportion since Confederation. Never mentioned is that there could be as many as 5 million Canadians living abroad – one-eighth of the Canadian population. The inflated but often-insincere rhetoric about immigration, emanating from Liberal and NDP politicians in Ottawa and from much of mainstream media, has simply ignored the whole question of outflow from Canada, of how we have lost so many of our best and brightest – and, without major economic, fiscal and governance reforms, will keep right on doing so.

On to Romania

Regardless of who wins the next federal election, any policy reforms are unlikely to come soon enough to change Elena Secara’s mind. She is firm in her decision to leave Canada and add herself and her family to the 4-million-plus Canadian emigrés. “I return to Romania every two years,” she says. “And I see improvements each time. In Canada it is the opposite. Canada is getting worse and worse. Canada is declining…In Romania there are much more opportunities for professionals, the medical system is better, the food is better.” And, she adds with a laugh, “Even the roads are better.”

On the rebound: Once poor, corrupt and decrepit, Romania today is a growing regional economic power and competitor for immigrants – including emigrants from Canada like the Secara family. (Source of photos: Unsplash)

All of which stands as another indictment of Canada. Romania spent years after the Cold War as one of the poorest, most corrupt and decrepit nations in Europe, seemingly in terminal decline, the kind of place people left if they could – and hundreds of thousands did. Romania has managed to launch a remarkable comeback, however. Its per capita GDP  still lags Canada’s considerably but it has grown impressively over the last decade. It’s one of Europe’s leading destinations for foreign investment, and on Harvard University’s Economic Complexity Index – a measure of an economy’s productive capacity – it jumped from 39th in the world in 2000 to 19th, just behind France. Canada is facing ever-greater competition from nations on the rebound just as it enters the second decade of what may be its longest and most serious economic deterioration since Confederation.

Secara doesn’t bother overanalyzing the data. For her, “quality of life” sums up her thinking. “I love Canada,” she says. “And I thank Canada for all the experiences I have. But Canada is not what it was.”

Scott Inniss is a Montreal writer.

Continue Reading

Alberta

REPORT: Alberta municipalities hit with $37 million carbon tax tab in 2023

Published on

Grande Prairie. Getty Images photo

From the Canadian Energy Centre

By Laura Mitchell

Federal cash grab driving costs for local governments, driving up property taxes

New data shows the painful economic impact of the federal carbon tax on municipalities.

Municipalities in Alberta paid out more than $37 million in federal carbon taxes in 2023, based on a recent survey commissioned by Alberta Municipal Affairs, with data provided to the Canadian Energy Centre.

About $760,000 of that came from the City of Grande Prairie. In a statement, Mayor Jackie Clayton said if the carbon tax were removed, City property taxes could be reduced by 0.6 per cent, providing direct financial relief to residents and businesses in Grande Prairie.”

Conducted in October, the survey asked municipal districts, towns and cities in Alberta to disclose the amount of carbon tax paid out for the heating and electrifying of municipal assets and fuel for fleet vehicles.

With these funds, Alberta municipalities could have hired 7,789 high school students at $15 per hour last year with the amount paid to Ottawa.

The cost on municipalities includes:

Lloydminster: $422,248

Calgary: $1,230,300 (estimate)

Medicine Hat: $876,237

Lethbridge: $1,398,000 (estimate)

Grande Prairie: $757,562

Crowsnest Pass: $71,100

Red Deer: $1,495,945

Bonnyville: $19,484

Hinton: $66,829

Several municipalities also noted substantial indirect costs from the carbon tax, including higher rates from vendors that serve the municipality – like gravel truck drivers and road repair providers – passing increased fuel prices onto local governments.

The rising price for materials and goods like traffic lights, steel, lumber and cement, due to higher transportation costs are also hitting the bottom line for local governments.

The City of Grande Prairie paid out $89 million in goods and services in 2023, and the indirect costs of the carbon tax have had an inflationary impact on those expenses” in addition to the direct costs of the tax.

In her press conference announcing Alberta’s challenge to the federal carbon tax on Oct. 29, 2024, Premier Danielle Smith addressed the pressures the carbon tax places on municipal bottom lines.

In 2023 alone, the City of Calgary could have hired an additional 112 police officers or firefighters for the amount they sent to Ottawa for the carbon tax,” she said.

In a statement issued on Oct. 7, 2024, Ontario Conservative MP Ryan Williams, shadow minister for international trade, said this issue is nationwide.

In Belleville, Ontario, the impact of the carbon tax is particularly notable. The city faces an extra $410,000 annually in costs – a burden that directly translates to an increase of 0.37 per cent on residents’ property tax bills.”

There is no rebate yet provided on retail carbon pricing for towns, cities and counties.

In October, the council in Belleville passed a motion asking the federal government to return in full all carbon taxes paid by municipalities in Canada.

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.

Continue Reading

Trending

X