Diverting gas for domestic use may harm sector: Economists
A poll conducted jointly by Monash Business School and the Economic Society of Australia has revealed influential economists believe that asking gas producers to divert reserves for domestic consumption is not the right policy setting, despite the threat of looming domestic gas shortages in winter.
Economists polled by the Economic Society of Australia (ESA) Monash Forum argue that a ‘protectionist’ policy would lower domestic gas prices for consumers but was likely to cause long-term economic damage.
However, others argue such a policy might be a “second best” option to ensure Australia’s manufacturing industry – a major user of gas - isn’t significantly damaged.
The ESA Monash Forum is a joint initiative between Monash Business School at Monash University and the Economic Society of Australia (ESA). It conducts a monthly poll of 51 eminent industry and academic economists who take part in the