EDITORIAL: Prime Minister’s green plans will increase housing costs

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As the Trudeau government prepares a new plan to increase affordable housing, it’s a good time to examine what impact its green energy plans will have on housing costs for Canadians.

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In a new study for the fiscally conservative Fraser Institute, Guelph University economist Ross McKitrick says the price of a new home across Canada will rise by an average of 8%, or $55,000, by 2030.

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McKitrick estimates the cost will be highest in British Columbia at $78,093, followed in descending order by Ontario ($71,818). Quebec ($38,070); Alberta ($35,499); Nova Scotia ($30,677); P.E.I. ($28,369); Manitoba ($26,894); Saskatchewan ($26,436); Newfoundland and Labrador ($22,966) and New Brunswick ($22,144).

In “Wrong Move at the Wrong Time: Economic Impacts of the New Federal Building Energy Efficiency Mandates,” McKitrick estimates that by 2030 this will reduce Canada’s total greenhouse gas emissions by just 0.9% and Canada’s GDP by 1.8%.

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McKitrick said the main reason for the higher costs is a proposal in the building energy efficiency components of the Trudeau government’s 2030 Emissions Reduction Plan that calls for reducing energy use in new residential buildings to 65% below 2019 levels by 2030.

“These are very high costs to impose on Canadians at a time when the economy is struggling and housing is already unaffordable for so many people,” McKitrick said.

These increased costs don’t just apply to new buildings.

The CD Howe Institute reported last year that retrofitting existing homes would cost up to $18,000.

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The study by Charles DeLand and Alexander Vanderhoof, “Only Hot Air? “The Implications of Replacement Oil and Gas in Canadian Homes” concluded that “even in an extreme scenario in which no new emitting buildings come onto the market after 2022, emissions will only fall by about 26% by 2030, whatever.” “Not yet enough to achieve the government’s goals” of 42%).”

The Trudeau government has said it has programs in place to help homeowners address the increased costs of reducing their residential emissions, and that homeowners are seeing significant savings due to the lower energy costs that come with making their homes more energy efficient become.

However, the cost of reducing residential emissions highlights that carbon pricing drives up the cost of almost everything.

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