Developing Canada's arctic oil reserves: an assessment of the interregional economic impacts

In this paper we assess the economic impacts of two scenarios ofoffshore oil development in Canada's Arctic: one based on pipeline transportation and the other based on tanker transportation. A dynamic multiregionalinput - output model is specified in order to take accountof substantial regional spillover effects and capacity expansion effectswithin the Northwest Territories. The results indicate that in both scenarios a large share of the economic benefits accrue to other regions, but thatthe pipeline scenario yields greater benefits for the Northwest Territories.Differences between the two scenario results are explained in terms ofthe spatial and sectoral patterns of input requirements and differencesin capacity expansion effects.