Fossil Fuel Consumption in Australia
Issue
Australian fossil fuel consumption for personal gain is undoubtedly an economic issue which
discourages environmental intergenerational equity and carbon-neutrality. 70% of Australian energy
sources are fossil fuel-based, with consumption accounting for 5% of global greenhouse gas
emissions (Australian Government 2021). Thus, a negative consumption externality (Appendix 1) is
created as consumption causes worsening air and water quality, volatile weather conditions and
general environmental degradation. Australian fossil fuel consumption must be reduced to achieve
“Australia’s whole-of-economy Long-Term Emissions Reduction Plan... to achieve net zero
emissions by 2050” (Australian Government 2021).
Proposed Program
A public-private partnership (PPP) between the Australian government and Sun Cable is proposed.
Sun Cable aims to implement a high voltage direct current transmission system across Australia
utilising energy collected by a large Singaporean solar farm. The private project has been propelled
towards voluntary administration during its implementation stage as “consensus on the future
direction and funding structure of the company could not be achieved,” (Griffin 2023). As “Sun Cable
recommended public support for the development of local capability... needed for the long-distance
electricity export project” (Macdonald-Smith 2023), the project would undeniably benefit from a PPP
to provide unified direction and management.
Economic Rationale
Considering this previously successful project’s pre-existing research and a solid delivery model, the
Australian government’s participation in the PPP would be a colossal step towards a solar powered
future in Australia. It is predicted that the initial implementation stage of this project will take five
years with public assistance to manage the project’s funding and public image. From ongoing
government support as the project spreads across Australia, a smooth delivery of the solar power
export project is ensured to benefit reduce impacts of the negative consumption externality.
Delivery Model and Funding Arrangements
To raise funding, individuals, firms and the government should pay solar premiums based on current
energy consumption as a component of taxes. Funds will accumulate and surrender fully once the
transmission system is active, providing society with access to pre-paid, clean energy. The
government must utilise historical data from energy companies to accurately price and collect
premiums and in turn, monitor returns from this project to society in a non-corrupt and equitable
manner. It is recommended that the PPP adheres to Sun Cable’s initial delivery model due to its
feasibility economically and scientifically.
Advantages
Photovoltaic technology produced on a large scale is more cost effective due to economies of scale,
an advantage of this PPP as “Sun Cable called for the Australian government to draw up strategies to
develop an industry for the manufacturing of [photovoltaic technology]” (Macdonald-Smith 2023).
The long-term stability of a shared pool of sustainable energy is particularly beneficial for lower
income households and firms struggling to afford high installation costs of private solar panels. The
government can ensure that results are accessible for lower income parties and the premium pricing
schemes are equitable and uncorrupted when raising capital.
Limitations
It would be challenging for political parties to promote this PPP due to lack of short-term benefits,
unappealing to society during elections, with a large financial burden placed on the government to
manage the funding of this project. Additionally, the government may experience increased spending
in the form of unemployment benefits as shut-down of private fossil fuel-based energy firms cause
frictional and structural unemployment. Furthermore, there is opportunity cost of the reallocation of
resources towards other projects which may experience success and reap greater benefits in the shortterm for society and the environment.
Evaluation Design
Outcome evaluation is essential in determining success of the PPP’s intended outcomes. The short to
medium term outcomes include immediate changes in the energy market to decrease consumption of
fossil fuel-based energy, measured through quantitative and qualitative data. Accessibility of the
project will become clear within five years from the construction of the transmission system to
measure society’s engagement. In the long-term, the PPP’s assistance in reaching carbon-neutrality in
Australia can also be evaluated over several years, as the main objective of this proposal which will
thus imply its impact on the environment.
Process evaluation can be utilised to understand the effectiveness of the implementation of this project
across Australia in the short-term. As a large scale, costly project, it is important to evaluate the
efficiency at which the solar farm is built and the way it is integrated into the energy market by
collecting quantitative financial data. From this, the delivery model can be assessed to measure
resource wastage as evaluation is “a key tool to improve the design and delivery of ongoing and new
initiatives” (NSW Treasury 2023).
Together, outcome and process evaluation enable the thorough analysis of this proposal in meeting its
intended outcomes through its implementation and integration in society during its delivery.
Data Requirements
Collecting both quantitative and qualitative data enables appropriate evaluation of the project’s
successfulness. Quantitative data includes measuring the change in volume of carbon emissions
released and percentage change in Australian energy composition to determine progress towards
carbon-neutrality over time. Monitoring air quality, overall environmental wellbeing, behaviour of
wildlife and society’s quality of life in a qualitative manner is crucial in determining the societal and
environmental effects of this PPP. Together, the combination of quantitative and qualitative data will
create a more holistic view of the delivery, integration and effect of this PPP on the Australian society
and environment.
Research Limitations
Key intended outcomes will become more prevalent over the next 20 years as consumption adjusts,
increasing uncertainty when examining sample populations due to disparities and changes in energy
usage and consumption over time. It could be challenging to compare present and historical data,
limiting outcome evaluation approach as comparison of a range of data is essential. Additionally, the
large-scale evaluation projects must undergo auditing and ethical reviews to guarantee integrity and
privacy has been upheld. Furthermore, subjectivity of qualitative data hinders an accurate
representation of Australian society and the environment, limiting the effectiveness of the evaluation
across different samples.
Appendix 1
Figure 1: Negative Consumption Externality (Pettinger 2019)
998 words
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