EDMONTON – Alberta Finance Minister Joe Ceci met with key economists to look ahead to 2017, with the consensus being the worst is over for the provincial economy.
But Avery Shenfeld, chief economist of CIBC, says how much things will improve is still up in the air and tied to the price of oil.
READ MORE: Worst of energy downturn over in Alberta as oil starts to stabilize, ATB Financial says
Ceci and the economists discussed a range of issues, including Alberta’s looming carbon tax.
Shenfeld says while taxes are always a balancing act, the upside of the carbon levy is that it will be recycled back into the economy and is likely less harmful than, say, a higher direct tax on oil producers.
READ MORE: Hundreds of Albertans protest carbon tax at second legislature rally
Mary Webb, with Scotiabank Economics, says what’s good about the carbon tax is that Alberta has tailored it to suit its needs rather than having one imposed from the outside.
READ MORE: How will Alberta’s carbon tax impact consumers?
The carbon tax takes effect on Jan. 1, hiking the cost of gasoline at the pumps and home heating bills to create a multibillion-dollar fund that will invest in green projects, such as rapid transit.