Australian Energy Policy and Conservation

Abstract

The publication in April 1988 of the document, Energy 2000: A National Energy Policy, was a landmark, since this was the first clear statement of the Australian Government’s energy policy. Previously, Federal Governments had been content to tax domestic crude oil production to the level of the world oil price—so-called import parity pricing—at some benefit to the Revenue, with few other initiatives. Implementation of energy policy in Australia is complicated by the constitutional powers of the States over energy-related production and pricing. After outlining the importance to Australia of the energy sector—in particular the export of coal and the proposed export of liquid natural gas—this paper examines critically the elements of energy policy as stated in the Federal Government document, with particular emphasis on policies for energy conservation, in some aspects of which Australia lags behind other industrialised countries. The paper includes a survey of theoretical analysis of the issue of encouraging energy conservation and of other countries’ attempts to resolve this. The paper concludes with some suggestions for changes to the stated policies.