Climate Change and Energy Issues

With the failure of the Copenhagen summit, government policy on climate change has entered a period of significant uncertainty. What targets should Australia commit to and what mechanism should we use to achieve them? Is emissions trading the answer? Insight Economics has considerable expertise both in climate change policy issues and related strategic questions facing companies.

Jon Stanford has had a long history of working in climate change policy and associated economic modelling. He has directed a number of major economic modeling projects — for Commonwealth and State governments as well as for business — directed towards estimating the cost of greenhouse gas abatement action. A decade ago, Jon directed the first major modeling report on emissions trading for the Victorian government and more recently the Greenhouse Challenge for Energy project for the same client. Jon was also a member of then NSW Premier Carr’s expert group examining the rationale for ratifying the Kyoto protocol. Most recently, he worked for over a year on a major project for the Northern Territory government advising on a climate change strategy.

The firm has strong competencies in the economics of energy industries, particularly upstream. For example, Jon Stanford has undertaken significant work in the LNG sector, including a major piece of work for the Western Australian Government focusing on the proposal to develop the Gorgon gas resource on Barrow Island. He has also undertaken major work on the uranium industry. The major challenge for the future is where Australia’s electricity is going to come from in a carbon constrained world and what the implications of this are for the competitiveness of energy-intensive industries.

Insight Economics works closely with the Centre of Policy Studies at Monash University in terms of economic modeling of greenhouse policy and with McLennan Magasanik Associates for energy sector modeling.