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Some economic implications of population dispersion in Canada.

In New Brunswick, as in the rest of Atlantic Canada, the quality of life is highly prized, and for many inhabitants this means a rural life style. New Brunswick (with the exception of Prince Edward Island) is the most rural of the Canadian provinces. In addition, over time it is becoming more rural. This paper examines some of the economic implications arising from the rural life style. The provincial government also has expressed concern over rural dispersion in New Brunswick, hence this paper is predominantly policy-oriented. It argues that social costs are considerable, and advocates increased emphasis on user-pay pricing. The intention is not to prohibit rural non-farm residence, but merely to charge rural dwellers a portion of the social costs they impose. The political feasibility of such a policy is open to question, but the alternatives may be increased tax rates or a reduced level of service, and these may be even more politically unpopular.