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Understanding New Resource Projects

Author

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  • Kenneth W Clements

    (Business School, University of Western Australia)

  • Jiawei Si

    (Business School, University of Western Australia)

  • Thomas Simpson

    (Business School, University of Western Australia)

Abstract

The surge in new resource projects has been a prominent feature of the recent strong performance of the Australian economy, with mining and energy investment accounting for almost one-half of all private investment. Although the current round of resource investment has now peaked, as resource cycles tend to repeat themselves, there is an ongoing need to carefully understand the available information sources. In this paper we (i) analyse the factors determining the generation of projects; (ii) investigate cost escalation as projects progress through the investment pipeline, from the initial planning stages to completion; and (iii) use a specially developed panel of matched projects from three widely followed, but under-researched, data sources to analyse the biases, the degree of independence and timeliness of each source. This information is of use to policy makers who have to closely monitor these developments, to analysts following the resources sector, and to project proponents wanting to identify projects most likely to succeed and to know the typical cost profile of a project.

Suggested Citation

  • Kenneth W Clements & Jiawei Si & Thomas Simpson, 2014. "Understanding New Resource Projects," Economics Discussion / Working Papers 14-17, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:14-17
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    References listed on IDEAS

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    1. Tim Robinson & Tim Atkin & Mark Caputo & Hao Wang, 2017. "Macroeconomic Consequences of Terms of Trade Episodes, Past and Present," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 57(3), pages 291-315, November.
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    Cited by:

    1. Ruble, Isabella, 2017. "European Union energy supply security: The benefits of natural gas imports from the Eastern Mediterranean," Energy Policy, Elsevier, vol. 105(C), pages 341-353.
    2. Kirli, Desen & Couraud, Benoit & Robu, Valentin & Salgado-Bravo, Marcelo & Norbu, Sonam & Andoni, Merlinda & Antonopoulos, Ioannis & Negrete-Pincetic, Matias & Flynn, David & Kiprakis, Aristides, 2022. "Smart contracts in energy systems: A systematic review of fundamental approaches and implementations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    3. Kenneth W. Clements & Jiawei Si & Thomas Simpson, 2016. "Understanding New Resource Projects," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 584-600, September.
    4. Smith, Jo U. & Fischer, Anke & Hallett, Paul D. & Homans, Hilary Y. & Smith, Pete & Abdul-Salam, Yakubu & Emmerling, Hanna H. & Phimister, Euan, 2015. "Sustainable use of organic resources for bioenergy, food and water provision in rural Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 903-917.
    5. Boussauw, Kobe & Vanoutrive, Thomas, 2017. "Transport policy in Belgium: Translating sustainability discourses into unsustainable outcomes," Transport Policy, Elsevier, vol. 53(C), pages 11-19.

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