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SUN NEWS COLUMN: Energy Discussions Should Be Realistic

In a bid to reduce carbon dioxide emissions, Winnipeg’s city council recently voted to look at halting the use of natural gas in the frigid prairie city. 

Council wondered if it would be possible for Winnipeg homeowners and businesses to use electric heaters instead of natural gas.

Manitoba Hydro, the province’s power utility, must have had a slight heart attack when asked about such a proposition; Winnipeg gets extremely cold in the winter and residents use a lot of natural gas to stay warm. Hydro noted it would have to double its electricity output to generate enough power to heat everyone’s home with electricity. 

Winnipeg is not alone.

The “Ontario Clean Air Alliance,” has boasted that 21 municipalities have signed on to their call for the provincial government to phase out natural gas power plants claiming that solar and wind power could fill part of the gap. 

Encouragingly, the Paris-based International Energy Agency’s (IEA) has reported that the cost of solar and wind energy sources is dropping significantly – so much so that they’re now the cheapest way of “adding new electricity-generating plants in most countries today.”

That’s great news for consumers. The more options there are for electricity generation in the world the better. Competition is a good thing. It helps drive innovation and keeps costs affordable for consumers.

Of course, there’s one big problem: the sun doesn’t always shine and the wind doesn’t always blow. Importantly, the IEA also projects that the world will need more natural gas in the years ahead. The IEA expects demand for natural gas to grow from 23 per cent of the world’s energy usage to 25 per cent over the next twenty years.

Why? Well, growth is one reason but stable reliable energy sources like natural gas are needed as a back-up to intermittent renewables on cloudy days or when the wind isn’t blowing.

Far from seeking to halt natural gas use, municipalities should consider how natural gas can help reduce emissions.

According to the U.S. government, the CO2 emissions from natural gas are roughly half of what the emissions are from coal and they’re 25 per cent lower than gasoline and diesel.

With that in mind, imagine if more cities followed Calgary’s lead and used natural gas-powered buses instead of diesel buses. Not only would that reduce emissions, natural gas buses are also ten times quieter

An even bigger benefit would arise if China, India and other south east Asian countries used natural gas from Canada to produce their electricity instead of coal power. Such a change could reduce CO2 and smog levels while helping to create countless new jobs in Canada. (This endeavour is actually underway in B.C., but it could occur on a much larger scale if we approved more natural gas export projects as a country.)

A competitive market for energy products that embraces technology, lowers prices and produces lower emission outputs is welcome. Nuclear, solar and wind are the most obvious but so too is natural gas – and what’s better, Canada has an abundant supply for international customers and even those freezing in Manitoba winters.

Colin Craig is the President of SecondStreet.org, a new Canadian think tank.

This column was published in Sun News Columns on March 26th, 2021. To see article click here.

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Prevention – reduce demand in the first place

If Canadians lived healthier lives, we could reduce demand for emergency services, orthopaedic surgeries, primary care and more. 

For instance, if you visit the Canadian Cancer Society’s website, you’ll read that “about four in ten” cancer cases are preventable. The Heart and Stroke Foundation notes that “almost 80 percent of premature heart disease and stroke can be prevented through healthy behaviours.” A similar number of Diabetes cases are also preventable. 

Many joint replacements and visits to ERs and walk-in clinics could also be avoided through healthy living. 

To be sure, not all health problems can be avoided through healthy living – everyday the system treats Canadians with genetic conditions, helps those injured in unavoidable accidents and more.  

But there is an opportunity to reduce pressure on the health care system through Canadians shifting to healthier lifestyles – better diets, more exercise, etc. 

To learn more, watch our Health Reform Now documentary (scroll up) or see this column. 

Partner with non-profits and for-profit clinics

European countries will partner with anyone who can help patients. 

It doesn’t matter if it’s a non-profit, a government entity or a private clinic. What matters is that patients receive quality treatment, in a timely manner and for a competitive price.  

In Canada, governments often delivery services using government-run hospitals instead of seeing if non-profit or private clinics could deliver the services more effectively. 

When governments have partnered with non-profit and private clinics, the results have often been quite good – Saskatchewan, Ontario and British Columbia are just a few examples of where partnerships have worked well. 

Canada should pursue more of these partnerships to reduce wait times and increase the volume of services provided to patients.  

To learn more, watch our Health Reform Now documentary (scroll up) or see the links above. 

Make cross border care more accessible

In Canada, citizens pay high taxes each year and we’re promised universal health care services in return. The problem is, wait times are often extremely long in our health system – sometimes patients have to wait years to see a specialist or receive surgery. 

If patients don’t want to wait long periods, they often have to reach into their own pocket and pay for treatment outside the province or country. 

Throughout the European Union, we also find universal health care systems. But a key difference is that EU patients have the right to go to other EU countries, pay for surgery and then be reimbursed by their home government. Reimbursements cover up to what the patient’s home government would have spent to provide the treatment locally. 

If Canada copied this approach, a patient waiting a year to get their hip operation could instead receive treatment next week in one of thousands of surgical clinics throughout the developed world. 

Governments benefit too as the patient is now back on their feet and avoiding complications that sometimes come with long wait times – meaning the government doesn’t have to treat those complications on top of the initial health problem. 

To learn more, watch our Health Reform Now documentary (scroll up) or this shorter video. 

Legalize access to non-government providers

Canada is the only country in the world that puts up barriers, or outright bans patients from paying for health services locally. 

For instance, a patient in Toronto cannot pay for a hip operation at a private clinic in Toronto. Their only option is to wait for the government to eventually provide treatment or leave the province and pay elsewhere. 

Countries with better-performing universal health care systems do not have such bans. They allow patients a choice – use the public system or pay privately for treatment. Sweden, France, Australia and more – they all allow choice. 

Why? One reason is that allowing choice means some patients will decide to pay privately. This takes pressure off the public system. For instance, in Sweden, 87% of patients use the public system, but 13% purchase private health insurance. 

Ultimately, more choice improves access for patients. 

To learn more, watch our Health Reform Now documentary (scroll up) or watch this short clip on this topic. 

Shift to funding services for patients, not bureaucracies

In Canada, most hospitals receive a cheque from the government each year and are then asked to do their best to help patients. This approach is known as “block funding”. 

Under this model, a patient walking in the door represents a drain on the hospital’s budget. Over the course of a year, hospital administrators have to make sure the budget stretches out so services are rationed. This is why you might have to wait until next year or the year after for a hip operation, knee operation, etc. 

In better-performing universal health systems, they take the opposite approach – hospitals receive money from the government each time they help a patient. If a hospital completes a knee operation, it might receive, say, $10,000. If it completes a knee operation on another patient, it receives another $10,000. 

This model incentivizes hospitals to help more patients – to help more patients with knee operations, cataract surgery, etc. This approach also incentivizes hospitals to spend money on expenses that help patients (e.g. more doctors, nurses, equipment, etc.) rather than using the money on expenses that don’t help patients (e.g. more admin staff). 

To learn more about this policy option, please watch our Health Reform Now documentary (scroll up) or see this post by MEI.