ENVIRONMENTAL POLICY IN A PETRO-STATE: THE RESOURCE CURSE AND POLITICAL ECOLOGY IN CANADA’S OIL FRONTIER A Dissertation Presented to the Faculty of the Graduate School of Cornell University In Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy by Angela V. Carter August 2011 © 2011 Angela V. Carter ENVIRONMENTAL POLICY IN A PETRO-STATE: THE RESOURCE CURSE AND POLITICAL ECOLOGY IN CANADA’S OIL FRONTIER Angela V. Carter, Ph.D. Cornell University 2011 This dissertation analyzes environmental policy trends in frontier oil developments in two major Canadian oil dependent provinces: Alberta’s tar sands and Newfoundland and Labrador’s offshore oil fields. It attempts to account for how the environmental policy systems in these cases permit or do not prevent the environmental impacts of oil development. The theoretical frameworks of the resource curse and political ecology literatures guide this analysis within the broader context of work on petro-capitalism. I use qualitative methodologies, primarily semi-structured interviews and a review of scholarly, government, and publicly oriented literature, alongside basic economic data analysis to understand the impact of oil on these provinces. I argue that petro-political dynamics in these cases result in weak environmental policy regimes that, in turn, lead to undesirable environmental outcomes. The provinces I study are marked by the symbiotic relationship between governments and oil companies. Given shared economic interests in oil development, the provincial (and also federal) government ensures the continuation of the industry via financial subsidies, by actively defending and promoting the industry at home and abroad, and by abrogating its regulatory responsibility and authority. The oil industry simultaneously reinforces the governmental approach through coordinated lobbying efforts. The shared interests of government and industry amount to strong consent for oil developments and translate into biased environmental policy regimes: the petro- politics at work forward rapid, extensive oil development while not meaningfully restraining the resulting environmental impacts. Notable ways in which regulatory structures are weak or underdeveloped involve critical gaps in regulations and research as well as ineffective public consultation, monitoring and enforcement. However, there are viable policy alternatives available and growing oppositional movements are pressing for these changes. Building from those perspectives, the dissertation closes by presenting two paths forward. The first adjusts current policies to avoid the worst outcomes of the resource curse and to reduce environmental impacts. The second challenges the petro-political system more profoundly, suggesting alternatives that are environmentally sustainable and politically and economically just. BIOGRAPHICAL SKETCH Angela V. Carter commenced doctoral work at Cornell University’s Government Department following a Bachelor of Arts (Honors) in Communication from the University of Ottawa in 2001 and a Master of Arts in Political Economy from the Institute of Political Economy at Carleton University’s Faculty of Public Affairs and Management Program in 2003. In the Government Department, she specialized in the fields of comparative politics and political economy. Carter focuses her research on environmental policy using a political economy approach. She is currently a collaborator on the Social Sciences and Humanities Research Council Strategic Research Grant, “The Environmental Assessment Processes of Canadian Frontier Oil and Gas,” with Dr. Gail Fraser (principal investigator, York University) and Dr. Anna Zalik (York University). Since 2008, Carter has worked in her home province of Newfoundland and Labrador, Canada, as an Assistant Professor of Environmental Studies and Political Science. Her teaching focuses on environmental politics, environmental policy, and public policy in resource dependent economies. As Co-Facilitator of the Environmental Policy Institute at Grenfell Campus, Memorial University, Carter has also played a lead role in developing the Environmental Policy Institute and the Master of Arts in Environmental Policy. iii To John, with hope. iv ACKNOWLEDGMENTS The Cornell University community has provided me with a wealth of support in this work. I am especially grateful for the patience and guidance of Peter Katzenstein, the dissertation supervisor, and my dissertation committee members, Richard Bensel and Philip McMichael. Peter offered direction on writing and crafting arguments, got me back on track after many diversions and helped me make it to the finish line. I could not have completed this work without his kind advice. Richard and Phil were also pivotal mentors since my first years at Cornell. Throughout my graduate studies, they were always willing to help me hone arguments, see the larger contexts, and propose new avenues of research. Then Theodore Lowi kindly agreed to act as the final reader, offering his trademark enthusiasm and conceptual rigor. Tina Slater, Graduate Field Assistant at the Department of Government, also provided long-standing support throughout this process. In addition, I would like to thank those who helped me develop this work through joint writing projects: Laurie Adkin, Gail Fraser, Randy Haluza-DeLay, Philippe LeBillon, Byron Miller, and Anna Zalik. Other colleagues have been equally ready with wise advice and assistance including Sean Cadigan, Simon Dyer, Leah Fusco, Diana Gibson, Wade Locke, Samantha Majic, André Plourde, Mark Shrimpton, and Nickie Vlavianos. A special thanks is also owed to Robert Babe, Rianne Mahon, and Leslie Regan Shade who encouraged me to pursue graduate work and supported me in the transition to studying political science in the U.S., as well as to colleagues from across the St. John’s campus of Memorial University who welcomed me upon my return to Newfoundland. Over the past few years, this work has benefited from comments and discussion at numerous conferences. I wish to thank the organizers and participants at sessions at Queen’s University’s Institute for Energy and Environmental Policy, Northwestern v University’s Buffett Center for International and Comparative Studies, York University’s Extractive Industries Research Group as well as at the annual conferences of the Association of American Geographers, Canadian Political Science Association, and Atlantic Provinces Political Science Association. Further, I would like to acknowledge the organizations that generously funded this research: the Canada-U.S. Fulbright Program, the Social Sciences and Humanities Research Council (through both a Doctoral Scholarship and a Strategic Research Grant with principal investigator Gail Fraser and collaborator Anna Zalik), Cornell University’s Center for the Environment, Cornell University’s Graduate School, Memorial University’s Institute of Social and Economic Research, Memorial University and the Government of Newfoundland and Labrador’s Institute for Biodiversity, Ecosystem Science & Sustainability, and the Government of Newfoundland and Labrador’s Research & Development Corporation. I am also thankful for the many interviewees in Alberta, Alaska, Newfoundland and Labrador, Saskatchewan, Wyoming, and many areas in between who offered their time and patience as I tried to make sense of the impact of oil on their societies. I am equally grateful for the assistance of many people within finance and statistical government departments across the case sites who assisted me in finding and understanding data. In 2008, I was warmly welcomed to Grenfell Campus, Memorial University of Newfoundland. In particular, I want to thank Wade Bowers, Ivan Emke, William Iams, and Holly Pike and for their support and optimism. I also want to thank the many staff and faculty members who helped make Grenfell’s Environmental Policy Institute and the Master of Arts in Environmental Policy a reality and a promising intellectual home. Excellent students have helped me develop these ideas as well. I would like to note the assistance of Marilyn Clark, Tom Cochrane, Jenna Jones, Heidi Kavanagh, Mitchel Moynihan, Afolabi Opanoubi, Candice Pike, and Aura Villanueva. vi Finally, I am thankful for the generous and long-standing help of family and friends beyond those noted above. My parents, Florence and Weston Carter, need special mentioning here alongside Margaret Amerongen-McKeon, Roanne Bosch, Stuart Cryer, Simon Jansen, Sally Schwartzbach, Neil Schwartzbach, Michael Sedelmeyer, Mercedes Steedman, Katie Temple and Nikki van Dusen. Further, I would not have begun this work without the encouragement and extensive help of Jean-Philippe Ranger. And I would not have finished it without the love, support and steadfast conviction of John Peters. vii TABLE OF CONTENTS BIOGRAPHICAL SKETCH ....................................................................................................... iii ACKNOWLEDGMENTS ............................................................................................................ v LIST OF FIGURES ........................................................................................................................ x LIST OF ABBREVIATIONS ...................................................................................................... xii CHAPTER 1: A FRAMEWORK FOR UNDERSTANDING PETRO-PROVINCES ............ 1 I. BROAD THEORETICAL CONTEXT: PETRO-CAPITALISM .............................................................