The Invisible Hand’s Green Thumb: Market-based Instruments for Environmental Protection in Alberta

Authors: Shawna Stirrett, Robbie Rolfe and Stephanie Shewchuk

With Alberta’s population projected to rise and with another development boom around the corner, the need to protect the province’s environment has never been more critical. In The Invisible Hand’s Green Thumb: Market-based Instruments for Environmental Protection in Alberta authors Shawna Stirrett, Robbie Rolfe and Stephanie Shewchuk examine three case studies of market-based instruments (MBIs) in Alberta that provide critical lessons about implementing MBIs and the role of supportive public policy.

Case studies examined in the report include a transfer of development credits program in the Beaver Hill area, an emissions trading program that exists province-wide, and a program that pays farmers in the County of Vermillion River to restore and/or preserve ecologically important areas on their farmland, all of which reveal important lessons about MBIs.

While there are challenges that exist with the use of MBIs, by creating an effective policy framework and promoting the use of market-based instruments in Alberta, the government could ensure that economic growth and environmental protection are balanced in the future.