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June 2013
Pouring more fuel on the fire
The federal government is pouring an extra half a billion dollars into taxpayer-funded subsidies to the mining industry, research by The Australia Institute has found. The Institute’s new paper Pouring more fuel on the fire reveals the booming sector has been propped up even further over the past year and now receives $4.5 billion from
April 2013
Electricity and privatisation: what happened to those promises?
Electricity prices are a major contributor to cost of living pressures and a major cause of concern for Australian consumers. While the carbon tax has recently been depicted as the main culprit in electricity price increases, electricity prices have been increasing rapidly for the past two decades. The cost of electricity increased by 170 per
February 2013
Still beating around the bush
Since the beginning of the mining boom Australia’s rural sector has lost $61.5 billion in export income. This includes $18.9 billion in 2011-12 alone. These losses have occurred because the mining boom has forced the Australian dollar to historic highs. The damage the mining boom is doing to other sectors has created what has been
December 2012
Tasmanian Forest Agreement 2012: Who is the winner?
On 22 November 2012, the timber industry and environmental non-government organisations released the Tasmanian Forest Agreement 2012 (TFA). The agreement includes a number of components, the most significant of which are the support for the creation of an additional 504,012 ha of forest reserves, a reduction in the high quality sawlog guarantee from 300,000 m3
Carbon credits from Western Australia’s multiple use public native forests: a first pass assessment
The object of this report was to analyse the carbon credits that could be generated by stopping all harvesting in the public native forests covered by the Conservation Commission of Western Australia’s Draft Forest Management Plan 2014-2023 (FMP forests). These forests cover an area of ~850,000 ha and have produced 300,000-500,000 m3 yr-1 of logs
November 2012
Beating around the bush
Summary Since the beginning of the mining boom Australia’s rural sector has lost $43.5 billion in export income. This includes $14.9 billion in 2010-11 alone. These losses have occurred because the mining boom has forced the Australian dollar to historic highs. The damage the mining boom is doing to other sectors has created what has
August 2012
Measuring Fugitive Emissions: Is coal seam gas a viable bridging fuel?
With increasing awareness of the dangers of climate change, the world is hunting for other forms of power generation that produce lower emissions of greenhouse gas. While gas is not a zero emissions energy source, it has come to be seen by some as a ‘bridging fuel’. In Australia an increasingly important source of gas
James Price Point: An economic analysis of the Browse LNG project
The Western Australian government together with Woodside proposes to build the Browse LNG precinct on James Price Point in the Kimberley region of Western Australia (WA). The evidence to support the state government’s claim that the precinct will deliver economic benefits is virtually non-existent. Indeed, a close reading of the scant evidence that is available
June 2012
Climate of the Nation 2012: Australian attitudes on climate change
This Spotlight Report provides an objective benchmark of attitudes to the issue of climate change in 2012 in Australia and a rigorous analysis, qualitative and quantitative, of the pros and cons of climate change and its solutions.
May 2012
Submission on Arrow Energy’s Gladstone LNG Plant proposal
Arrow Energy plans to build a Liquefied Natural Gas (LNG) plant in Gladstone to export coal seam gas (CSG) from its reserves in the Surat and Bowen Basins. This construction project is proposed to occur at the same time as a large number of other projects in Gladstone such as the Yarwun Alumina Refinery Expansion,
April 2012
Pouring Fuel on the Fire
The mining industry is receiving substantial assistance from Australian taxpayers worth more than $4 billion per year in subsidies and concessions from the Federal Government alone. Amazingly, this is at a time when the industry is earning record profits. Significantly, these subsidies and tax concessions do not even include the cost of providing the mining
Too much of a good thing? The macroeconomic case for slowing down the mining boom
The Australian mining boom has been driven by rapidly rising world commodity prices. Put simply, the world is now willing to pay much higher prices for our coal, iron ore, gold and other resources than they were 10 years ago. For example, gold prices have risen from about 400 $US/ounce in 2004 to about 1600
March 2012
Job creator or job destroyer: An analysis of the mining boom in Queensland
On the back of record high commodity prices the mining industry in Australia is experiencing an unprecedented period of expansion. The value of our mineral exports has increased to the point where they now make up more than half of the value of all our exports. This increase combined with the huge inflow of capital
February 2012
CSG economic modelling
Santos is planning to mine the coal seam gas reserves of North West New South Wales and, as elsewhere with coal seam gas projects, has encountered substantial local opposition. Action groups such as ‘Save Liverpool Plains’ and ‘Lock The Gate Alliance’ have initiated lobbying and protest action. However, Santos has recently released a report entitled
December 2011
An analysis of the economic impacts of the China First mine
The proposal by Waratah Coal to build one of the world’s largest coal mines which will transport its coal through the Great Barrier Reef, in the middle of a mining boom, and at a time when the world is attempting to reduce greenhouse gasses has obviously not been without some controversy. However, despite the obvious
November 2011
Carbon Bloating: The unintended consequences of giving away free permits to big polluters
The Gillard Government recently passed legislation which will, for the first time in Australia, see big polluters pay for their greenhouse gas emissions through a price on carbon. While the introduction of a carbon price will not in itself drive a substantial reduction in Australia’s emissions, it does begin to build the necessary policy infrastructure
September 2011
Mining the truth: The rhetoric and reality of the commodities boom
“The future is in our hands, and it will be defined by the way we handle the current minerals boom. Get it wrong, and we falter. Get it right, and we set the nation up for decades to come.” Prime Minister, the Hon. Julia Gillard The Australian economy, like all modern economies, is diverse and
August 2011
Mining Australia’s productivity
The recent debate about productivity trends in Australia has revolved around the reported decline in labour productivity growth. For example, the new Secretary of the Treasury, Dr Martin Parkinson recently stated: “Australia’s productivity growth, measured in terms of both labour productivity and multifactor productivity, has slowed, and there is little reason to believe it will
The direct costs of waiting for direct action
In the 2007 federal election both major parties committed to introducing an Emissions Trading Scheme (ETS). By 2009 both parties agreed on an emissions reduction target of five per cent on 2000 levels by 2020. But since Tony Abbott became leader of the Liberal Party the bipartisan position for a reliance on a market based
July 2011
The real cost of direct action: An analysis of the Coalition’s Direct Action Plan
The Coalition has committed to reducing greenhouse gas emissions by five per cent on 2000 levels by 2020. It proposes to achieve this target with a “Direct Action Plan”: a competitive grant scheme that would buy greenhouse gas reductions from businesses and farmers. Over the past decade various Australian governments have announced more than seven
June 2011
How many jobs is 23,510, really? Recasting the mining job loss debate
It is commonplace in Australian policy debate for groups presumed to be adversely affected by proposed policies to provide estimates of the undesirable consequences of change. A fashionable form relates to predictions of job losses for the group affected, usually accompanied by counter-claims made by the government of the day or other groups in favour
May 2011
On the wrong track: The case for abandoning the promised $7 billion subsidies to Australia’s dirtiest coal-fired power stations
The Gillard Government is committed to introducing a price on carbon pollution by July 2012 however the details of the price, the sectors of the economy that will be covered by the scheme and the design features of the compensation package that is likely to accompany the carbon price are currently being negotiated by the
April 2011
The industries that cried wolf
The introduction of a carbon price in Australia in July 2012 will raise more than $10 billion per year, help influence industrial and household decision making and, inevitably, increase the costs and reduce the profits of some businesses. Such increases in cost and the subsequent change in behaviour are, of course, the objective of introducing
February 2011
Complementary or contradictory? An analysis of the design of climate policies in Australia
Contrary to popular belief, the policies that are most effective in driving down greenhouse gas emissions actually raise revenue rather than cost the budget money. The Gillard Government has recently scrapped, or wound back, a range of policies designed to help reduce greenhouse gasses in order to ensure the budget returns quickly to surplus. These
November 2010
Submission on mining taxation
On 30 September 2010, the Select Committee on New Taxes initiated an inquiry into the following matter: (a) new taxes proposed for Australia, including: (i) the minerals resource rent tax and expanded petroleum resource rent tax, (ii) a carbon tax, or any other mechanism to put a price on carbon, and (iii) any other new
October 2010
What Australians don’t know about CSG
Coal seam gas (CSG) is a controversial way of extracting natural gas. While many Australians hold strong views against it, a surprising number are only vaguely aware of the issue. In addition to feeling generally uninformed, many people also express unease about CSG because of the controversy surrounding it. A survey conducted by The Australia
September 2010
Running on empty? The peak oil debate
Like climate change, the possibility of peak oil poses an uncomfortable challenge to citizens and governments alike in the 21st century. ‘Peak oil’ is the term used to describe the point in time at which the worldwide production of crude oil extraction will be maximised. But while it is inevitable that production will peak at
August 2010
Once more with feeling: Principles for reducing greenhouse gas emissions and improving the wellbeing of most Australians
While the 2007 election was fought on a promise by the ALP to introduce a carbon price the 2010 election was fought by both the ALP and the Coalition on a promise not to do so. For the ALP the promised inaction was until at least 2013 and for the Coalition the promise was open
Why a carbon tax is good for the hip pocket
A price on carbon is widely regarded as an essential element of an efficient response to climate change, yet such an approach has been described as a ‘great big tax on everything’ by opponents. While there is no doubt that putting a price on greenhouse gas emissions will lead to an increase in the price