Last night I went to see Prof. Ross Garnaut speak on ‘China’s Energy Transition: Effects on Global Climate and Sustainable Development’. Me and Ross go back a long way. Not personally of course, but my career in economics has somehow become enmeshed with his. His report on ‘North Asia’s Economic Ascendancy’ was the first government report I read when I was a callow youth at university. It set out a path for Australia to exploit the economic opportunity of North Asia (i.e. Japan, South Korea, China and Taiwan). It wasn’t about resources, instead he said we should aim to be an exporter of ‘elaborately-transformed manufactures’ – i.e. advanced manufacturing goods that require significant use of Australia’s design expertise and creativity. It was a report that inspired me to think how economics could be used to guide governments. (more…)
Image: Center for Problem Gambling.
Energy is a funny industry. In most industries, when supply increases, prices should fall. It is different in the Australian energy sector, the opposite seems to happen. The State of Western Australia (WA) is a good example of this phenomenon as pointed out in this article. (more…)