Environmental and Resource Economics
What We Do
Environmental and Resource Economics
Gillespie Economics helps companies, governments, nongovernment organisations and individuals analyse the environmental, social, cultural and economic effects of projects and policies in a rational way, consistent with economic theory. A range of specialist environmental and resource economic services, tailored specifically to meet the needs of the client, can be provided. The types of analyses that can be undertaken are outlined below.
Application of economics to the management of natural resources such as catchment management, forests, biodiversity, wilderness, fisheries, fauna, extractive materials and minerals, water, groundwater, waste disposal and recycling, global warming, ozone depletion, stationary and mobile source air pollution, water pollution, recreation and tourism.
Application of benefit cost analysis, with a focus on incorporation of non-market impacts, to a wide range of resource allocation issues. Where appropriate opportunity cost analysis, threshold value analysis and cost effectiveness analysis can also be undertaken. Experience includes benefit cost analysis of catchment regulations, catchment strategies, sewerage projects, forestry proposals, gold/nickel/cobalt/coal/limestone mining, hard rock extraction, national park visitor centres, world heritage area nominations, regulatory impact statements, research proposals, Council strategic plans, water supply proposals, clearing and cultivation applications, native vegetation clearing.
Valuation of the non-market effects of projects and policies using:
market based techniques such as productivity approaches, opportunity costs and defensive expenditures;
surrogate market techniques such as the property value approach and travel cost method;
hypothetical market or survey techniques such as the contingent valuation method and choice modelling; and
Regional Economic Impact Assessment
Consideration of the direct and indirect employment, income, value-added and output impacts of proposals using input-output analysis, and the appropriate interpretation of these impacts vis-à-vis the outcomes of benefit cost analysis and general equilibrium analysis. Experience includes the development of numerous regional models and the assessment of the regional economic impact of national parks, forestry, gold/nickel/cobalt/coal/limestone mining proposals, hardrock extraction, marine park tourism operators as well as the critical review of numerous regional economic impact studies.
Use of discounted cash flow analysis to consider the profitability of proposals to the proponent and/or as a starting point for consideration of the social desirability of the proposal. Experience includes financial appraisal of sewerage proposals, caravan park redevelopment, forestry proposals, mining projects and national park visitor centres.
Analysis of existing pricing policies of firms or organisations and development of appropriate pricing policies to meet the clients objectives, whether that be economic efficiency, revenue maximisation or some other objective. Experience includes development of a pricing policy for NSW national parks and a pricing and charging review for NSW marine national parks.
Economic and Financial Instruments
Use of economic and financial instruments, such as charges or taxes, subsidies, marketable permits, deposit-refund systems and enforcement incentives, to achieve environmental goals. Experience includes examination of the application of economic instruments to vegetation management, biodiversity conservation and catchment management.
Policy Analysis, Development and Review
Analysis, review and development of environmental policy. Experience relates to a wide range of policy areas such as revenue generation and pricing policies, tourism, use of economic instruments to encourage conservation of biodiversity, world heritage nominations, historic heritage conservation, the State Biodiversity Strategy, native forestry, competition policy, regulatory reform, rural adjustment policies, and water quality and river flow policies.
Presentations and Mentoring
Teaching and mentoring on environmental and resource economics and its application to a wide range of sectors and issues including resource extraction, fisheries, outdoor recreation, infrastructure, subdivision and residential development, European and Aboriginal heritage, climate change, sustainability, waste management and recycling, biodiversity conservation, ozone depletion, pollution and catchment management. Experience includes lecturing at Macquarie University, Sydney University and University of Technology, Sydney, provision of advisory services to government economists, development and implementation of courses for NSW Government agency personnel, presentations to Government Ministers, Executives, conferences, workshops, Planning Assessment Commissions, Government inquiries and the NSW Land and Environment Court.