According to a release from the provincial government, a new analysis from the University of Regina’s Institute for Energy, Environment and Sustainable Communities, says that a federal carbon tax could potentially reduce Saskatchewan’s gross domestic product (GDP) by almost $16 billion, with little effect on emissions.

Researchers from the Institute looked at several detailed scenarios of a federal carbon tax. The most conservative scenario shows a carbon tax of $50 per tonne would reduce provincial GDP by 2.43% or $1.8 billion annually, while only reducing greenhouse gas emissions by less than one megatonne.

Total impact to the provincial GDP could reach approximately $16 billion from 2019 to the end of 2030.

The benchmark GDP in this model was $74.6 billion, and emissions were 69.29 megatonnes.

The Government of Saskatchewan spent $190,000 to commision this study, and since it was government funded some environmental economist are saying it shows only to have the picture, as the study doesn't say what the carbon tax revenues would be going towards.