York University’s Sustainable Energy Initiative (SEI) announces the publication of the 5th in its series of research papers on Ontario Electricity Policy. Understanding the Economic Impact of Renewable Energy Initiatives, by SEI Co-Chair Professor Mark Winfield, examines the debates around the Ontario’s Green Energy and Green Economy Act as an energy and economic development strategy.

The paper finds that the empirical data on the employment impacts of the Ontario legislation is extremely limited. Rather, the evidence regarding the economic impacts of the GEGEA is found to be almost entirely based on the results of economic modelling exercises. Critics and supporters of the legislation have arrived at very different conclusions through such exercises. These outcomes are similar to those seen in other jurisdictions pursuing renewable energy initiatives. The paper explores the reasons for the different conclusions being reached over the impacts of renewable energy initiatives. Differences in modelling approaches, assumptions regarding the costs of renewable energy technologies relative to non-renewable alternatives and most importantly the treatment and valuation of environmental and other externalities and risks in modelling the cost impacts of different energy technologies are found to be key factors in explaining the different conclusions.