a solution to the intractable problems of coal mining in the liverpool plains
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ASOLUTIONTOTHEINTRACTABLEPROBLEMSOFCOALMININGINTHE
LIVERPOOLPLAINS
DrBoydDirkBlackwellPrincipalResearchLeader(ECVM)
CRCRemoteEconomicPar>cipa>on,UNEBusinessSchool,Armidale
Presenta(ontotheNewEnglandEnergyFuturesForum,21May2016,UNE,Armidale
PolicyContext:TheEndofCoal?• Someminesclosingothersbeginning–localtoglobalscaleofchange
• Physicalandeconomiclimitstothecon>nueduseofnon-renewablesacrossthesescales– includingsocialandenvironmentallimitswiththesebroaderaspectswhichareinculcatedintooureconomicsystemsthroughinsEtuEonse.g.• Marketsincl.marketmechanisms,pricing,taxesetc.• regula>on,lawandcompliance• Ministerialapprovals
*Thegreatestpossiblegoodforthegreatestnumberofindividuals
Aretheseenoughandaretheyservingthecommongood*?
hUp://www.eia.gov/todayinenergy/detail.cfm?id=4390
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JevonsParadox,1865• TheCoalQues(on;AnInquiryConcerningTheProgressOfTheNa(on,AndTheProbableExhaus(onOfOurCoal-mines
AlfredMarshall1878,DuringtheIndustrialRevolu>on
• ‘Whenatlastnaturegainstheday,asiteventuallymust,inotherwords,wheneconomieshereceasetocheapenprices,orpreventpricesfrombecomingdearer,andbegintoactontheconsumpEonsoastoreduceit,theendofthecoal-produc>onofGreatBritainonthegreatscalewillalreadyhavebegun’
(Marshall1878,p.324)
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AlfredMarshall1878• ‘Thiscountry'sfortunesare
graduallybeingmergedinthoseofagreaterBritain,which,largelythroughtheaidofthecoalwhoseprospec>velosswearelamen>ng,hasgrownbeyondthelimitsoftheseislandstooverspreadthevastestandrichestregionsoftheearth;norhaveweanyreasontofearthatthegreatinheritancewhichAmericaandAustraliaandNewZealandhavethusacceptedfromuswill,intheirhands,bedealtwithunworthily.’(Marshall1878,p.349)
Marshall’sKeyQues>on• Focusonthecommercialwaste–whatIhavesynthesizedto
callcommercialdriversfortheendofcoalratherthanthephysicaldrivers.
• Physicaldrivers(Marshallcalledphysicalwaste)arenotenough–technologycanreducethecostandopenupsupply
• Incontrast,commercialdrivers–desireforprofit–thelevelofdemandandpricewilldeterminewhenandwheretheendofcoal(ormoreaptly,endofamine)isnear
• ThisthereforerequirescompeEEveandcheapformsofenergysupply– includingtheincorpora>onofsocialcostsandbenefits– HoweverNB:JevonsParadox
Arethese
assessedfairly
anddoesthe
processservethe
commongood?
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• ABARE,mul>pleuse• InLiverpoolPlainscasethereis
poten>allynomul>pleandsequen>alusewhereminingcomesfirstinthesequence
• Offsets,ECVMBUT…..• Pollu>onofwatertablethensoils
couldirreversiblydestroy‘foodbowl’ofNSWandna>on
• Inthissensemul>pleandsequen>aluseisa‘non-sense’
• SimilartothePACdetermina>onfortheHorseRacingandViEcultureindustriesintheHunterinrejec>ngTheDraytonSouthProject
• ‘CriEcalIndustryClusters’andCSGexclusionzones
Mul>pleandSequen>alUse
Discussion• TransiEoningtoanimprovedstatewillrequiredaddi>ons
toourcurrentins>tu>onsandmarketeconomy• AgriculturalImpactAssessments–butaretheseenough?• Wheremarketandcurrentins>tu>onshavefailedwehave
usedProtectedAreastoconservekeypiecesofnatureandculture:– Marineandterrestrialprotectedareas– Na>onalParks– WorldHeri>ageLis>ng– RAMSARwetlands– Biospherereserves– Surfingreserves– WildRiversetc.
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Discussioncon>nued…• Providesforzoningandcontrolsonpar>cularusesthatensurethe
integralvaluesofthe‘asset’aremaintainedannoterodedordestroyed• Whynotwhererisksaretoohighie‘we’arenotwillingtoforgothe
chanceofadverselyandirreversiblyimpac>ngourprimeagriculturallandandresources(water,social,economic,ins>tu>onal)?
• AgriculturalProtectedAreas(APAs)orMiningExclusionZonesareawayforward-basedoncriteriasuchas‘compara>veandcompe>>veadvantage’forthelongterm:– Naturalfeatures:idealsoils,watersupplies,climateetc.– Socialfeatures:establishedpopula>onsandsocie>es,culture– Economicfeatures:
• establishedsupplychains,ins>tu>ons,networks,• gene>cmaterial,• capitalinvestmentsetc.
– Na>onalsecurityfeatures:• foodandwatersecurity;• gobeyondcompara>veandcompe>>veadvantage• becomesessen>alin>mesofwar/disasters
AboriginalandTorresStraitIslanders
• IndigenousProtectedAreas(IPAs)areawayofmanagingsimilarintractableresourceextrac>onproblems
• JustlikeAg,mul>pleandsequen>alusecanbeanon-sensewhenpeople,theirhealthandcultureareseverelycompromisedorannihilated
• ECVMisanavenueforcompensa>on/capitalisa>onoflossesbutinsomecasesmininghasnoplace
• Ethics
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Conclusion• Whenandwhereenergymineralsrunout,aredetermined
bylocaltoglobalfeatures• Totransformourregionalandremotecommuni>esto
moresustainablefutures,withoutforgoingthevirtuesofamarketorcapitalistsystem,weneedtocontrol/eliminateit’sadverseeffects
• ProtectedAreasareaninstrumentthatarecurrentlyusedto‘save’elementsofourculturesornaturalheritagethatwearenotwillingtoforgoregardlessofalterna>veuses
• AgriculturalProtectedAreasprovideanopportunityforreform,tobeUeralignpoli>calinterestswiththecommongood
References• Jeavons,W.(1865)TheCoalQues(on;AnInquiryConcerningTheProgressOfTheNa(on,AndThe
ProbableExhaus(onOfOurCoal-mines,London:Macmillan.Accessed21June2016from:hUp://www.econlib.org/library/YPDBooks/Jevons/jvnCQ0.html
• Marshall,A.(1878)‘TheCoalQues>on’,ChapterXandXIinThorpe,T.A.(Ed.)Coal:ItsHistoryandUses,MacMillian,London.Accessed14July2015from:hUps://ia601403.us.archive.org/19/items/coalitshistoryus00thorrich/coalitshistoryus00thorrich.pdf
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