Investigation 1

Last updated Sep 12, 2023 Edit Source

• The release of large amounts of CO$_2$ which contribute substantially to climate change in a number of ways. Climate change has quite a few costs that are paid by people in general.
• More respiratory illnesses leading to higher medical costs to the state from the pollutants (as opposed to the CO$_2$ release which doesn’t tend to directly cause these problems)
• Increased acid rain and its effects on water systems (due to pollutants).
• The release of mercury and its effect on wildlife (both bioaccumulation and biomagnification).
• Or a number of other negative results.
• Air pollution from burning fossil fuels. This activity causes damages to crops, materials and (historic) buildings and public health.
• Anthropogenic climate change as a consequence of greenhouse gas emissions from the burning of fossil fuels
• Natural gas has a external cost of $A19/MWh (THE HIDDEN COSTS of ELECTRICITY: Externalities of Power Generation in Australia, n.d.) when accounting for impacts such as health risks and environmental affects

• The extraction of oil has many adverse health affects on workers and nearby residents
• Increased risk of:
  • Many types of cancer
  • Cardiovascular problems
  • Neurologic and hematological problems
• Hydraulic oil fracking workers have high levels of silica

• Hydraulic oil fracking workers have high levels of silica
• Can cause oil spills

• Fishing opportunities for thousands of fisherfolk lost due to mangrove contamination
• Reduced marine productivity due to disruption of the food chain
• Opportunity cost due to government dispatch of ships and aircraft to conduct clean-up operations
• Loss of marine and coastal wildlife (e.g. fish, birds, turtles, sea snakes, mammals)
• Loss of tourism revenue (affects surfers, beach goers, sports fishing, SCUBA diving)
• Loss of ecological function of marshlands and mud flats
• Lost income for tourism industries
• Decline in aquaculture production (e.g. seaweed farms, fish cages, shellfish beds)
• Oil price hike due to lost oil production
• Health costs for those engaged in clean-up operations

• In Australia, in the 2022 calendar year, 535.7 million tonnes of carbon dioxide was released into the atmosphere

• Limiting the pollutant emissions by producers
• Can be done by creating laws to set a limit to the pollution emissions
• This reduces the pollution emitted, therefor reducing the negative externalities in the oil and gas industry
• This also reduces the quantity of oil and gas supplied which increases market efficiency
• Quantity lowers and price lowers

• Imposing a tax on pollution emitted
• A tax can be imposed to reduce the MSC
• This internalises the external cost
• Quantity lowers but price increases

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‌Value- adding: Australian Oil and Gas Industry. (2014). https://www.appea.com.au/wp-content/uploads/2014/11/PwC-Report-Oil-and-Gas-Industry-Sept-2014-FINAL.pdf
Topic: Oil and gas industry in Australia. (2022). Statista; Statista. https://www.statista.com/topics/5608/oil-and-gas-industry-in-australia/#topicOverview
Australia: employment in oil and gas industry 2021 | Statista. (2021). Statista; Statista. https://www.statista.com/statistics/692178/australia-employment-in-oil-and-gas-industry/
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