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Economics
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December 2018
Volatile gas: Economics and gas in Western Australia
Western Australia’s economy is heavily impacted by the resource sector. 22% of gross state production comes from resources, making it heavily exposed to the booms and busts of global resource markets. The established gas industry in Western Australia comprises large-scale offshore gas fields focussed on export markets and a number of smaller onshore gas producers
November 2018
The economic impacts of unconventional gas in Western Australia
WA’s moratorium on fracking has been overturned without consideration of economic impacts. Economic logic, and the lived experience of Queensland and the USA, shows the industry has an incentive to expand as much and as fast as possible. This has a negative impact on communities, provides few jobs, little revenue and could increase domestic gas
Will-o’-the-ISP – Estimating renewable energy employment under the Integrated System Plan
Between 18,000 and 59,000 construction and installation jobs could be created if the Energy Market Operator’s Integrated System Plan ‘fast scenario’ on renewable transition is adopted. It would see around 53% of capacity from renewable energy by 2030.
Submission to the NSW Independent Planning Commission: Bylong Coal Project
In November 2018 The Australia Institute made a submission to the NSW Independent Planning Commission on the Bylong Coal Project. Based on its own figures, the Bylong Coal Project is a high-cost, low-quality proposal. It is unlikely to be competitive in a time when exports through Newcastle have stalled, with the port’s fourth coal terminal
Submission to Senate inquiry into the indicators of, and impact of, regional inequality in Australia
The Australia Institute made a submission to the Senate inquiry into the indicators of, and impact of, regional inequality in Australia.
October 2018
I’ll have what they’re having
This report is a step-by-step guide to valuing compensation in the Lower-Darling. Major changes to the management of the Lower Darling will affect the whole community. To date only one stakeholder, major agribusiness WebsterLtd, has been compensated by the Commonwealth. The region’s other businesses and property owners should assess how Webster’s compensation was calculated in
Trickle Out Effect
This report is the first in a series that highlights how the Murray–Darling Basin Plan has increased the flow of money and water to big agribusinesses and has increased the vulnerability of everyone else in the Basin– Aboriginal people, floodplain graziers, downstream communities and small irrigators. [READ FULL REPORT]
August 2018
Inquiry into trade in elephant ivory and rhino horn
The Australia Institute made a submission to the Joint Committee on Law Enforcement inquiry into trade in elephant ivory and rhino horn. The proposal to ban domestic trade in ivory and rhino horn would likely bring relatively large benefits and small costs. Benefits would reinforce domestic bans in countries such as China, Hong Kong and the
July 2018
The Basin Files: Maladministration of the MurrayDarling Basin Plan: Volume I
Since allegations of large-scale water theft were aired on Four Corners in 2017, a flood of media reports have shown that the $13bn Murray-Darling Basin Plan is not being well implemented: agency cover ups, political and regulatory capture, agencies with cultures of non-compliance, dodgy water deals, alleged fraud and unlawful amendments. [READ FULL REPORT]
Derivation of Long Term Diversion Limit Extraction factors in NSW
The Australia Institute welcomes the opportunity to make a submission on the Long-Term Diversion Limit Extraction (LTDLE) factors. LTDLEs are required to determine how much water has been recovered to meet the government’s water recovery target under the Murray-Darling Basin reforms. LTDLE factors need to be resolved to bring certainty to communities and water licence
The impact of Galilee Basin development on employment in existing coal regions
Development of the Galilee Basin would displace production in other coal regions. Galilee mines would be more automated and less job-intensive than existing mines. Based on coal industry analysis, central estimates of employment reduction are 9,100 in the Hunter Valley, 2,000 in the Bowen Basin & 1,400 in the Surat Basin compared to a no-Galilee
June 2018
Submission: Inquiry into Water Amendment Bill 2018
Proposed changes to the Water Act reduce accountability, parliamentary oversight and facilitate changes to the Murray Darling Basin Plan that are based on political convenience rather than science. The bill should not be passed.
Narrabri Gas Project: Comments on Response to Submissions
Santos’ response to submissions on its Narrabri Gas Project does not dispute most of the flaws identified in The Australia Institute’s initial submission. The economic assessment of the Narrabri Gas Project continues to be misleading and does not comply with NSW assessment guidelines. The benefit cost analysis by consultants GHD is contradicted by the proponents’
Advance Australia’s fair share: assessing the fairness of emissions targets
While Australia debates how to reach our Paris Agreement targets, wider issues such as whether these targets are appropriate and how they might need to be adjusted in the future are receiving scant attention. Australia’s current 2030 emissions reduction target is for a 26-28 percent reduction on 2005 levels. The Australian Labor Party has said
May 2018
Submission on Clean Energy Finance Corporation Amendment (Carbon Capture and Storage) Bill 2017
The Australia Institute welcomes the opportunity to make a submission to the Environment and Communications Legislation Committee (the “Committee”) regarding the Clean Energy Finance Corporation Amendment (Carbon Capture and Storage) Bill 2017. In our recent submission to the Department of the Environment and Energy as part of the Clean Energy Finance Corporation Statutory Review, we
Just to fill you in… Jobs and mine rehabilitation in Queensland
Lock the Gate asked The Australia Institute for assistance in estimating the potential employment impacts of increased mine rehabilitation in Queensland. This relates to the Mineral and Energy Resources (Financial Provisioning) Bill currently before the Queensland Parliament. Lock the Gate hope this bill, if passed and implemented, will reduce the mine rehabilitation ‘deficit’ in Queensland:
Dam the Consequences
Promotion of large-scale irrigation in the West Kimberley ignores the lessons of the East Kimberley. Census data shows that despite huge public subsidy in Ord irrigation, the major employers in both regions are health, education and services. Tourism, carbon farming, renewable energy and high-value niche agriculture are also avenues of potential development.Discussion paper
Desperate Measures: Supply measures, diversion limits and the Murray-Darling Basin Plan
A proposed amendment to the Murray-Darling Basin Plan would use ‘supply measures’ to change the Sustainable Diversion Limits and increase water use by irrigation. The proposed supply measures are inconsistent with the Basin Plan and likely to be unlawful.
Remote control: The Community Development Program, remote Australia’s Work for the Dole scheme
The Community Development Program (CDP) is remote Australia’s Work for the Dole (WFD) and “job assistance” scheme. In place since 2015, it operates across almost 75 percent of Australia’s area, an area with a population of just 304,000 people. Indigenous people are over 80% of the CDP’s 34,000 participants. In other words, CDP participants are
April 2018
Australia – the low tax country
OECD data shows Australia raises less tax revenue than almost all developed countries [Full report see PDF below] Australia is a low-taxing country. While tax debate in Australia tends to focus on tax rates, with endless comparisons of different countries’ rates of different taxes, these debates ignore the fact that Australia raises far less tax
March 2018
That’s not how you haggle
The Australian Government bought 29 gigalitres of water for $80m in the Condamine-Balonne valley. The vendors originally insisted on $2,200 per megalitre. But after negotiation, the Government paid a higher price – $2,745 per megalitre. Worse, the water has no legal status outside the farm gate and shouldn’t be counted towards the water recovery target.
February 2018
Clean Energy Finance Corporation Statutory Review: Submission
The Australia Institute made a submission to the Department of the Environment and Energy as part of the Clean Energy Finance Corporation Statutory Review. This submission makes five main points regarding the CEFC relating to the two key issues for consideration by the Department, being: the effectiveness of the CEFC in facilitating increased flows of
We’ll pay tax ….one day: Submission to Senate Inquiry into Corporate Tax Avoidance
The Australia Institute welcomes the opportunity to make this submission to the Senate Inquiry on Corporate Tax Avoidance. The issue of tax avoidance by multinational companies has been a research focus of the Institute for some time. While issues of declining PRRT payments and low company tax payments are becoming widely known, particularly due to
Moving Targets – Barnaby Joyce, Warrego valley buybacks and amendments to the Murray Darling Basin Plan
The Minister for Water, Barnaby Joyce approved the $17m purchase of water in the Warrego valley after criticising the Labor government for the same thing, but at less than half the price. This was a deal that required amendments to the Basin Plan to later adjust Basin Plan limits between valleys, outside the parliamentary process.
United Wambo Mine: Submission to Planning Assessment Commission
The Australia Institute made a submission to the Planning Assessment Commission on the United Wambo Open Cut Coal Mine Project. We have previously made submissions on Wambo Mine – Modification 12 and also on the United Wambo Open Cut Coal Mine Project economic assessment by Deloitte Access Economics (Deloitte assessment). There are a number of
It’s not the science, it’s how you use it
The Murray Darling Basin Authority (MDBA) is proposing a major amendment to the Murray Darling Basin Plan based on its Northern Basin Review,1 conducted over four years. The amendment would reduce the water recovery targets for the Northern Basin from 390 GL to 320 GL per year, a reduction of 70 GL. This amendment is
Northern Disclosure
New research released today by The Australia Institute shows that estimates of impacts on South Australia from proposed changes to the Murray Darling Basin Plan have been changed multiple times by the Murray Darling Basin Authority (MDBA). These changes appear to be based more on political convenience than best available science. “Initial versions of the
Submission on the Draft Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory: Greenhouse gas emissions
The Draft Final Report of the Northern Territory Scientific Inquiry into Hydraulic Fracturingeffectively recommends approval of unconventional gas development in the NorthernTerritory. It does this despite the huge potential climate change impacts of developing ashale gas industry, which this submission focuses on. Development of onshore shale oil and gas fields in the Northern Territory could
January 2018
Economies of shale
The Australia Institute made a submission on the Draft Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory (the Inquiry). The submission focuses on Chapter 13 Economic Impacts of the Draft Report and the report by ACIL Allen The economic impacts of a potential shale gas development in the Northern Territory (the
The costs of corruption
Corruption costs 5% of GDP worldwide. The cost of corruption to economies is well established, and much research exists on the impact of corruption on investment, business costs, efficient allocation of capital and economic inequality. Trust in government is at a historic low in Australia, and according to Transparency International’s Corruption Perception Index (CPI) Australia