Parallel Paths – 2.0 Setting the Stage
This chapter sets the stage for our analysis of implications for Canada of both Canadian and U.S. climate policy choices.
First, we begin with an overview of the Canadian-American trade, energy, and emissions relationships. We explore the close integration between the Canadian and U.S. economies, as well as key differences between the structure and emissions profiles of the two countries. Second, we set out the two key economic and environmental framing issues for our more detailed analysis of Canadian and U.S. climate policy in subsequent chapters: competitiveness and policy delay. We explore competitiveness issues in terms of which Canadian sectors are vulnerable due to their emissions intensity and level of trade exposure. We also present updated analysis on the costs of policy delay. Finally, we present our research approach, including economic modelling and other analytical tools utilized to quantify and assess a range of scenarios and impacts of potential U.S. and Canadian climate policy. We also describe our own engagement of Canadian and U.S. stakeholders and experts. This process of consultation ensured that our findings reflected the most recent policy movements in both countries.
© 2013