Management of Distributive Conflicts Impeding Expansion of Interprovincial Hydroelectricity Transmission

Conflicts over distributive effects are a perennial feature of policy-making. The purpose of this essay is to investigate how such distributive conflicts unfold in the context of interprovincial hydroelectricity transmission. Through analysis of two Eastern Canada agreements on interprovincial transmission, plus a related third case, the authors present three major findings. First, the relative distribution of associated impacts—material, non-material, and environmental—is important and often presents a significant barrier to interprovincial agreement. Second, the authors find the distribution of non-material impacts, related to both perceptions of fairness and provincial identity, is perhaps as significant as distribution of financial cost and benefit. Third, the authors find that weak intergovernmental institutions in Canada and ad hoc interventions by the federal government further compound the challenge. The authors argue that future efforts to expand hydro transmission across provincial boundaries are needed to address climate change, but to succeed they must address the challenge of all three types of distributive effects and be supported by consistent federal government leadership.