Government policy and access to natural gas service in Canada

As part of the Canadian energy policy between the mid-1970's to the mid-1980's, consumers were encouraged to use fuels alternative to oil. The first set of policy issues involved measures to provide consumers with incentives to switch to non-oil-burning equipment, whereas the second set of. policy papers emphasized the expansion of the natural gas distribution system. More than $1 billion have been spent on the gas pipeline expansion project. Consequences of program expenditures in each province were examined. With the exception of Manitoba, it was found that annual net pipeline additions were higher during the program period, indicating that the program policies induced these activities to occur sooner than if the policies were not in place. Kilometres of gas pipeline per individual constructed was highest in Quebec, where construction proceeded mainly between the more densely populated centres. In contrast, in Saskatchewan and Alberta, the program encouraged natural gas pipeline construction in rural areas with lower populations. Without the program, these areas may not have had access to natural gas for a very long time. It was concluded that, in this, and some other instances, public investment had the effect of accelerating developments, or encouraging the completion of projects that otherwise would not have been undertaken. It was suggested that in the future decision-makers consider the costs of changes in activity patterns prior to designing such programs. 2 figs., 1 table