Covid-19 has reaffirmed the essential role of government in a crisis. Only governments can stabilize a society during life-threatening events such as a pandemic.

As economies are struggling to return to normal, governments around the world are trying to accelerate that process. The central question thus becomes whether and how to get involved at the macro level, the micro level, or both.

Empirical evidence in Quebec and elsewhere suggests that governments are relatively good at developing and implementing broad policies and programs. In other words, they do a pretty good job at creating the environment within which economic actors can operate.

On the other hand, governments have a less-than stellar record at the micro level. Deciding which future technology or enterprise to support and champion is particularly challenging for governments.

One initiative of the Government of Quebec that seems to tick all the right boxes is the announcement made in early July by Energy Minister Jonatan Julien and Agriculture Minister André Lamontagne, along with Hydro-Québec President Sophie Brochu, that Hydro-Québec will ask Quebec’s electricity regulator to approve a new electricity rate for greenhouses. Under this initiative, a reduced rate of 5.59 cents per kilowatt-hour would apply to any greenhouse grower with a power demand for 50 kW or more a year for light and/or heat. The Régie de l’énergie is expected to render a decision on this subject before the end of the year.

It is estimated that there are about 1,000 greenhouse growers in Quebec that may avail themselves of the reduced rate and it is hoped that the cost savings will encourage growers to expand their current operations. The Government hopes that the production of vegetables in Quebec will double by 2025 to reach 90,000 tonnes.

This increased production would reduce imports, improve Quebec’s food security, and create jobs, as well as put a dent in Hydro-Quebec’s electricity surplus. That is quite a lot from what is, for all intents and purposes, a small, common sense change. The government here is not trying to start an industry or to pick winners. Rather, it is only improving the playing field on which they compete.