August 11, 2014 10:57 am

Harper government dismisses study on climate effects of Keystone pipeline

Saskatchewan Premier Brad Wall says a long-awaited report by the U.S. State Department on the Keystone XL pipeline is cause for some optimism.

Tony Gutierrez / The Canadian Press

The Harper government is dismissing an economic analysis on how the proposed Keystone XL pipeline project could effect climate change.

The government says the study done by researchers at the Stockholm Environment Institute is based on false assumptions.

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The study released yesterday says U.S. government findings that Keystone wouldn’t make a significant climate difference missed a major source of greenhouse gas emissions.

READ MORE: Keystone climate impacts could be higher than U.S. estimate: study

Co-author Peter Erickson says it doesn’t appear American officials looked at the implications of an increased supply of fuel.

He says greater supply could force prices down and prompt more consumption that could cause four times the emissions the U-S is predicting.

The authors acknowledge their study doesn’t answer whether Keystone XL would encourage oilsands expansion or simply provide an outlet for growth that would have happened anyway.

The federal government says that’s a key point that undermines the study’s findings.

Ottawa also says the study doesn’t factor in that Keystone crude would replace Middle East sour crude that causes more pollution.

© The Canadian Press, 2014

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