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