Why nobody has energy to burn
Australia has one of the lowest levels of energy productivity in the developed world. We use more energy to make a dollar’s worth of gross domestic product than the countries we typically compare ourselves to. But while labour productivity, multi-factor productivity and the productivity of our ports elicit interest from our political and business leaders, wasting energy has never rated too highly.
The fact Australia has lots of coal, oil and gas is often used as an excuse for squandering it but as economists and politicians who pride themselves on their economic acumen should know, the fact you have lots of something doesn’t mean you should waste it, particularly when it is a finite resource. Obviously, the more we use something, the scarcer it becomes.
Like all scarce resources, fossil fuels have an “opportunity cost”. Every tonne of coal we burn is a tonne we can’t export to another country. Wasting coal by lighting CBD towers at night and oil by slowly commuting through traffic jams consumes resources that could be used for higher-value purposes.
Related documents
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
Why are gas companies trying to sell us hydrogen?
The hydrogen dream has become widespread in the Australian climate conversation: apparently, with it, we’re going to decarbonise Japan, Korea, and the world! Is this ambitious vision a genuine step towards a greener future or merely a diversion from ongoing fossil fuel expansion?
Massive Gap Between Rhetoric and Actions on Emissions
Farmers know you can’t fatten a pig on market day and scientists know you can’t reduce greenhouse gas emissions by 2030 while expanding coal, oil and gas production.
The New Face of Climate Denial
Old-fashioned climate change denialism is the risk you run when you hold an international climate conference in a Middle Eastern petrostate and hand the reins to an oil baron, writes Stephen Long, but in practice, is Australia really much better?