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“Making Cents” of the Eastern Australian Gas Market

Author

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  • R. Quentin Grafton
  • Xunpeng (Roc) Shi
  • Ian Cronshaw

Abstract

The paper reviews the causes of high domestic gas prices and possible future gas shortfalls in the Eastern Australian gas market. It explains the economics of gas pricing, the effects of long‐term gas contracts on domestic supplies and prices, and examines the incentives faced by gas exporters. Policies to respond to concerns over gas supply and high domestic gas prices are explored and alternatives presented.

Suggested Citation

  • R. Quentin Grafton & Xunpeng (Roc) Shi & Ian Cronshaw, 2018. "“Making Cents” of the Eastern Australian Gas Market," Economic Papers, The Economic Society of Australia, vol. 37(1), pages 42-54, March.
    • Handle: RePEc:bla:econpa:v:37:y:2018:i:1:p:42-54
    DOI: 10.1111/1759-3441.12194
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    References listed on IDEAS

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    1. Paul Simshauser & Tim Nelson, 2015. "Australia's coal seam gas boom and the LNG entry result," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(4), pages 602-623, October.
    2. Shi, Xunpeng & Variam, Hari M.P., 2017. "East Asia’s gas-market failure and distinctive economics—A case study of low oil prices," Applied Energy, Elsevier, vol. 195(C), pages 800-809.
    3. Fleming, David A. & Measham, Thomas G., 2015. "Local economic impacts of an unconventional energy boom: the coal seam gas industry in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), January.
    4. Malcolm Abbott & Xiaoying Ma, 2017. "Economic Regulation in Australia: The Case of the New South Wales Gas," Economic Papers, The Economic Society of Australia, vol. 36(3), pages 250-265, September.
    5. Kelly Neill, 2017. "Western Australia's Domestic Gas Reservation Policy: The Elemental Economics," Economic Papers, The Economic Society of Australia, vol. 36(2), pages 121-134, June.
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    Cited by:

    1. Nelson, Tim, 2018. "East-coast Australian gas markets—Overcoming the lumpiness of capital allocation and temporal instability," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 103-112.
    2. Flottmann, Jonty, 2024. "Australian energy policy decisions in the wake of the 2022 energy crisis," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 238-248.
    3. Stavros Kalogiannidis, 2020. "Impact of Plant Closures on Urban and Regional Communities: A Case Study of South Australian Gas Industry and its Workers," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 994-1010.

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