Alberta's premier is rejecting a call from the provincial NDP to impose a moratorium on new projects in the province's oilsands.

NDP Leader Brian Mason said with billions invested to extract the resource, there are already enough oilsands projects on the go. Taking a breather would give the province a chance to build more infrastructure while also getting a handle on environmental concerns, he said.

"I would say placing a moratorium would benefit the province [and] it would benefit the economy."

But Premier Ed Stelmach said he is not on board: "A moratorium on oilsands development will bring about dire economic consequences right across the country of Canada."

Find middle ground, says economist

Paul Boothe, an economist at the University of Alberta and a long-time consultant to the provincial government, said a moratorium would hurt investor confidence. But rapid development isn't good either, he said.

"We won't get the greatest benefit unless we develop it at a rate that matches our ability to provide infrastructure, both transportation infrastructure but also things like hospitals and schools."

Boothe said Albertans are starting to realize that rapid growth in the oilsands is leading to a jump in inflation, and that goes hand in hand with a sharp rise in real estate values and the increasing cost of getting municipal projects done in an overheated economy.

"I think there's some middle ground. I don't think a moratorium is the right idea, but I do think that the province should look at managing the pace of development in order to match their ability to provide the infrastructure that's required."

Premier says C02 cuts coming

Meanwhile, Stelmach says his government is working on new environment legislation to reduce greenhouse gas emissions.

"We are the only province with clear legislation and will be following up this spring with regulations in terms of reducing CO2 emissions."

Stelmach said Alberta has reduced C02 emissions by 16 per cent in 14 years. That drop is actually in emissions intensity, a formula that takes into consideration economic growth.

Total greenhouse gas emissions in Alberta have actually increased by 39.4 per cent from 168.17 megatons in 1990 to 234.51 megatons in 2004, according to Environment Canada.