A Closer Look at British Columbia’s Natural Gas Royalties and Proposed LNG Income Tax
This report examines the assumptions behind the BC government’s projection of a $100 billion “Prosperity Fund” from LNG exports, and finds that the returns promised to the public are not realistic.
This is the first publication of the new LNG Reality Check Series, which over several briefs will analyze the economics and environmental impacts of LNG.
*UPDATE: Since the publication of this report, the BC government has tabled its proposed LNG tax regime, and halved the LNG income tax, among other modifications. Consequently, the estimates of potential revenue in this report substantially overstate the possible LNG tax income. To see Marc Lee’s early analysis of the new LNG tax regime, read A BC framework for LNG, part two: the LNG income tax. We also encourage you to read A BC framework for LNG, part one: the carbon benchmark.
About the author
Marc Lee is a Senior Economist with the Canadian Centre for Policy Alternatives. Marc joined the CCPA’s British Columbia office in 1998, and is one of Canada’s leading progressive commentators on economic and environmental policy issues. From 2009 to 2015, Marc led the CCPA’s Climate Justice Project (CJP), which published a wide range of research on fair and effective approaches to climate action through integrating principles of social justice. Marc continues to write about climate and energy policy, strategies for affordable housing, federal and provincial budgets and macroeconomics. Marc has an MA in Economics from Simon Fraser University and a BA in Economics from the University of Western Ontario. Marc is a past chair of the Progressive Economics Forum, a national network of heterodox economists. He also served as a Visiting Professor at Simon Fraser University’s School of Public Policy in 2024 to 2025.
