Economics Explored

Australia’s National Electricity Market was suspended by the market operator for nine days in June 2022. For a brief period, authorities were worried there would have to be widespread blackouts to balance supply and demand, so the market operator stepped in to direct generators to produce the power that was needed. In this episode, Andrew Murdoch, Managing Director of Arche Energy, explains what went wrong in June, and he talks to show host Gene Tunny about whether it could happen again. Are renewables coming into the system too quickly? What’s happening with batteries? Will Australia be able to cope with the retirement of coal-fired power stations? And what about all the EVs that will need charging? These and other questions are tackled in a frank and fearless conversation.  About this episode’s guest: Andrew MurdochAndrew Murdoch is Managing Director of Arche Energy, a Brisbane-based consulting firm specialising in energy projects.. He is an experienced general manager, project director and engineer operating in renewable power, power generation, energy, ports and heavy infrastructure. For more on Andrew’s experience, check out the Arche Energy website:https://archeenergy.com.au/about-us/andrew-murdoch/Links relevant to the conversationAustralian Energy Market Operator (AEMO) report into market suspension in June 2022:https://www.aemo.com.au/-/media/files/electricity/nem/market_notices_and_events/market_event_reports/2022/nem-market-suspension-and-operational-challenges-in-june-2022.pdf?la=enAEMO’s Integrated System Plan:https://aemo.com.au/en/energy-systems/major-publications/integrated-system-plan-ispNEM suspensions costs lower than expected - NB when they were directed to supply gas to the market at an uneconomic price for them at the market price cap of $300/MWh, the generators became eligible for compensation:https://aemo.com.au/newsroom/media-release/nem-suspension-costs-lower-than-expectedAEMO’s Electrical Statement of Opportunityhttps://aemo.com.au/en/energy-systems/electricity/national-electricity-market-nem/nem-forecasting-and-planning/forecasting-and-reliability/nem-electricity-statement-of-opportunities-esooSome large-scale Australian renewable and battery projects: https://lockyerenergy.com.au/https://supernode.com.au/Global coal demand as high as it has ever been:https://www.iea.org/reports/coal-market-update-july-2022/demandCreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

An electrified vehicle fleet will mean lower fuel tax revenues for governments and possibly greater traffic congestion as EVs are cheaper to run. Governments around the world are having to reassess how they charge for road use and one Australian state, Victoria, has introduced an EV tax based on distance traveled. In Economics Explored EP155, Marion Terrill from the Grattan Institute discusses what a rational road user charging system would look like. She also talks about Grattan’s truck plan, which is designed to get high polluting old trucks out of major Australian cities.  This episode’s guest Marion Terrill is Transport and Cities Program Director at the Grattan Institute. Marion is a leading transport and cities expert with a long history in public policy. She has worked on tax policy for the federal Treasury, and led the design and development of the MyGov account. She has provided expert analysis and advice on labour market policy for the Federal Government, the Business Council of Australia, and at the Australian National University.Links relevant to the conversationMarion’s bio: https://grattan.edu.au/expert/marion-terrill/Grattan Institute on Twitter: @GrattanInstMarion’s Australian Financial Review article “Electric vehicles: Feds should pave way for gold standard road user charges” (pay-walled): https://www.afr.com/policy/tax-and-super/feds-should-pave-way-for-gold-standard-road-user-charges-20220822-p5bbssGrattan’s 2019 report Right time, right place, right price: a practical plan for congestion charging in Sydney and Melbourne: https://grattan.edu.au/report/right-time-right-place-right-price/The Grattan truck plan: practical policies for cleaner freight: https://grattan.edu.au/report/grattan-truck-plan/Previous episodes featuring Marion:https://economics-explained.simplecast.com/episodes/megaprojects-with-marion-terrill-from-grattan-institutehttps://economics-explained.simplecast.com/episodes/unfreezing-discount-rates-with-marion-terrill-of-the-grattan-instituteCreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

A wide-ranging conversation on petrol/gasoline prices and electric vehicles (EVs). The conversation explores the peculiar economic phenomenon that is Australia’s petrol price cycle. What drives it and how can consumers make it work for them? Show host Gene Tunny and his guest Tim Hughes then discuss the big issues around replacing petrol-powered vehicles with EVs. What does it mean for total electricity demand and what challenges do we face in adopting EVs?Links relevant to the conversationAustralian Financial Review article (paywalled) quoting Ampol CEO saying EVs have to be 50% cheaper before widespread take up: https://www.afr.com/companies/energy/ampol-profit-more-than-doubles-on-refining-revival-20220822-p5bbniRecent oil price news: https://www.reuters.com/business/energy/oil-prices-rise-after-saudi-says-opec-could-cut-output-2022-08-23/Brent crude oil price: https://www.abc.net.au/news/2022-08-25/can-lucky-country-australia-become-a-battery-mineral-superpower/101358050Australian Competition and Consumer Commissions (ACCC) monitoring of Australia’s petrol price cycle: https://www.accc.gov.au/consumers/petrol-diesel-lpg/petrol-price-cycles#petrol-prices-in-brisbaneInformation on Queensland’s electric superhighway: https://www.qld.gov.au/transport/projects/electricvehicles/super-highwayQueensland Government website on environmental benefits of EVs: https://www.qld.gov.au/transport/projects/electricvehicles/hitting-the-roadThe Grattan Car Plan which includes lots of useful data on EVs: https://grattan.edu.au/report/grattan-car-plan/John Freebairn on fuel excise in Australia: https://theconversation.com/what-is-petrol-excise-and-why-does-australia-have-it-anyway-179373Drive magazine article on impact of EVs on electricity use: https://www.drive.com.au/news/electric-cars-could-have-big-impact-on-australia-s-energy-supply/Australian Energy Market Commission (AEMC) paper on integrating EVs in the power grid: https://www.aemc.gov.au/news-centre/media-releases/integrating-electric-vehicles-power-systemEconomics Explored EP113 - Lithium and the new energy revolution with Lukasz Bednarski: https://economicsexplored.com/2021/11/13/ep113-lithium-and-the-new-energy-revolution-with-lukasz-bednarski/ABC News report As EVs drive a mining revolution, will Australia become a battery minerals superpower?: https://www.abc.net.au/news/2022-08-25/can-lucky-country-australia-become-a-battery-mineral-superpower/101358050Thanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

The National Accounts are a huge intellectual achievement and an incredibly useful set of data, including GDP and its components. Chatting about the National Accounts with Economics Explored host Gene Tunny is fellow economist Dr Brendan Markey-Towler, author of the Substack newsletter Australian Economy Tracker. Brendan explains how the National Accounts help us track the current state of the economy as well as longer-term trends, such as shrinking manufacturing sectors and growing services sectors in many advanced economies. Links relevant to the conversationBrendan’s Australian Economy Tracker Newsletterhttps://australianeconomytracker.substack.com/Brendan’s post discussed in this episodehttps://australianeconomytracker.substack.com/p/australian-wealth-creation-and-distribution?utm_source=emailPlanet Money episode on Simon Kuznetshttps://www.npr.org/transcripts/520294083Australian Financial Review article (pay-walled, alas) which reported “Federal government business generated $1.7 billion in revenue for the big four accounting and consulting firms over the past five years – though the government has a different take on the contract value of that business.”https://www.afr.com/companies/professional-services/revealed-deloitte-ey-kpmg-and-pwc-earned-17b-from-government-work-20180326-h0xymnCreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

Do you get a return on investment if you get a university or college degree? Does the taxpayer get an ROI for any subsidies provided? Economics Explored host Gene Tunny discusses how economists crunch the numbers on the ROI of education with his colleague Arturo Espinoza. Gene also gives an update on the US economy, covering the strong jobs growth figure for July 2022 among other indicators.  Links relevant to the conversationMacrobond charts and commentary on the US economyhttps://drive.google.com/file/d/16u6pj-xjVcF5F6zfy5W99cDaClUwlsGF/view?usp=sharingSheepskin effect:https://en.wikipedia.org/wiki/Sheepskin_effectEstimating the return to schooling using the Mincer equation by Harry Anthony Patrinos, World Bank and Georgetown Universityhttps://wol.iza.org/uploads/articles/278/pdfs/estimating-return-to-schooling-using-mincer-equation.pdfEvaluating the Return on Investment in Higher Education: An Assessment of Individual- and State-Level Returns by Kristin Blagg and Erica Blom, Urban Institutehttps://www.urban.org/research/publication/evaluating-return-investment-higher-educationReassessing the College Wage Premium Payoff by Jack Salmon, Mercatus Center, George Mason Universityhttps://www.jamesgmartin.center/2021/03/reassessing-the-college-wage-premium-payoff/Rich Roll’s podcast:https://www.richroll.com/all-episodes/Graduate Winners: Assessing the public and private benefits of higher education by Andrew Nortonhttps://grattan.edu.au/report/graduate-winners-assessing-the-public-and-private-benefits-of-higher-education/Estimating the public and private benefits of higher education report from Deloitte Access Economicshttps://www.dese.gov.au/higher-education-reviews-and-consultations/resources/estimating-public-and-private-benefits-higher-educationMedian weekly hours data by qualification for Australiahttps://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/characteristics-employment-australia/latest-releasePlease consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored.Thanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au.

US Treasury Secretary Janet Yellen claims the US economy is not in a recession,  despite two consecutive quarters of declining GDP. Economics Explored EP151 guest Darren Brady Nelson disagrees with the Treasury Secretary and argues she is taking a political position. Whether she’s being political or not, Janet Yellen has certainly taken a big risk, as Darren and Gene discuss. Darren and Gene also talk about the review of the Aussie central bank, the Reserve Bank of Australia, particularly how climate change could figure in that review. Darren argues the review team should have a broader range of views represented, including Monetarist and Austrian perspectives. Darren is Chief Economist of the Australian think tank Liberty Works and he’s also an Economics Associate at the CO2 Coalition in Washington, DC. For Darren’s bio, check out:https://economicsexplored.com/regular-guests/While it’s the NBER that declares whether the US economy is in recession, this CNBC report notes: “Since 1948, the economy has never seen consecutive quarterly growth declines without being in a recession.”https://www.cnbc.com/2022/07/28/gdp-q2-.htmlBut many economists are skeptical about whether the US is in a recession, including recent podcast guests Stephen Kirchner and Michael Knox. Stephen Kirchner on the US recession question:https://stephenkirchner.substack.com/p/recession-is-as-recession-does-updating?utm_source=emailMichael Knox's Economic Strategy: Fed hikes rates, but Fed says no recession:https://drive.google.com/file/d/16xlMMKAEXv_wFA20EN3n3aVyYm7UuKua/view?usp=sharingCreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

The message from the IMF's July 2022 World Economic Outlook was that the outlook is “Gloomy and More Uncertain”. This week also saw the United States slide into a technical recession. Certainly there are big risks to the global outlook. It’s possible that central banks could tip many economies into recession as they hike interest rates to tame inflation. This episode considers the global economic outlook, plummeting Australian property prices, as well as the economic challenges facing Australia’s new federal government. It’s an abridged version of a conversation that show host Gene Tunny had with Decactivist host Randall Evans on his show. The conversation with Randall was recorded prior to the US GDP release, but Gene remarks on the data in his introduction to this episode. Links relevant to the conversationRandall Evans’ Deactivist show:https://www.youtube.com/c/DeactivistIMF World Economic Outlook July 2022: Gloomy and More Uncertain:https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-2022US recession news from NPR:https://www.npr.org/2022/07/28/1113649843/gdp-2q-economy-2022-recession-two-quartersCreditsThanks to Randall Evans for letting us borrow the audio from his latest Deactivist show for this episode. Also, thanks to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

The Reserve Bank of Australia has allegedly made some bad calls in recent years and now the Australian Treasurer has commissioned a major review. This episode’s guest, Dr Peter Tulip of the Centre for Independent Studies, has long pushed for a review of the RBA. Peter, a former RBA and US Fed economist, thinks the RBA can learn from other central banks such as the Fed and Sweden’s Riksbank, and it can avoid future bad policy decisions which cost hundreds of thousands of jobs. About this episode’s guest - Dr Peter TulipPeter Tulip is the Chief Economist at the Centre for Independent Studies, a leading Australian think tank. Peter has previously worked in the Research Department of the Reserve Bank of Australia and, before that, at the US Federal Reserve Board of Governors. He has a PhD from the University of Pennsylvania.Peter’s twitter handle: @peter_tulip Links relevant to the conversationPeter’s previous appearance on Economics Explored:https://economicsexplored.com/2022/04/11/the-high-cost-of-housing-and-what-to-do-about-it-w-peter-tulip-cis-ep134/Australian Treasurer’s 20 July 2022 announcement of RBA review:https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/review-reserve-bankPeter’s CIS paper on the RBA:https://www.cis.org.au/publication/structural-reform-of-the-reserve-bank-of-australia/Kevin Warsh’s review of the Bank of England Monetary Policy Committee:https://www.hoover.org/sites/default/files/transparency_and_the_bank_of_englands_monetary_policy_committee.pdfThis is the 2010 Statement on the Conduct of Monetary Policy that Peter refers to at the end of the episode:https://www.rba.gov.au/monetary-policy/framework/stmt-conduct-mp-5-30092010.htmlThis is the most recent statement:https://www.rba.gov.au/monetary-policy/framework/stmt-conduct-mp-7-2016-09-19.htmlCreditsThanks to the show’s audio engineer Josh Crotts for his assistance in producing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

While in Hobart, Tasmania for the 2022 Australian Conference of Economists, show host Gene Tunny caught up with Dr Leonora Risse and Dr Cameron Murray to reflect on the big economic issues covered at the conference. The Conference was framed in the context of adjusting to the so-called new normal. It dealt with issues such as government wellbeing budgets, the housing affordability crisis, the pandemic, and nowcasting, among others. Hear from Gene, Leonora, and Cameron regarding conference highlights and takeaways, including the risk of unintended consequences of government policy interventions. About this episode’s guestsDr Leonora Risse is an economist who specialises in gender equality. She is a Research Fellow with the Women’s Leadership Institute Australia, and recently spent time in residence at Harvard University as a Research Fellow with the Women and Public Policy Program. Leonora is a co-founder of the Women in Economics Network (WEN) in Australia and currently serves as the WEN National Chair. Leonora earned her PhD in Economics from the University of Queensland, and previously served as a Senior Research Economist for the Australian Government Productivity Commission. She is currently appointed as a Senior Lecturer in Economics at RMIT University in Melbourne, Australia. Her Twitter handle is @leonora_risse. Dr Cameron Murray is Post-Doctoral Research Fellow in the Henry Halloran Trust at The University of Sydney. Cameron has taught a number of courses including UQ's MBA economics course, macroeconomics, globalisation and economic development, and managerial economics.He writes for MacroBusiness, IDEA economics and Evonomics. Cameron has a PhD from the University of Queensland on the economics of corruption. He hosts the podcast Fresh Economic Thinking and his Twitter handle is ‎@DrCameronMurray.  Links relevant to the conversationLeonora’s paper (co-authored with Angela Jackson) on a gender lens on COVID-19 economic impacts:https://research.curtin.edu.au/businesslaw/wp-content/uploads/sites/5/2021/10/AJLE242risse.pdfCameron’s Fresh Economic Thinking substack:https://fresheconomicthinking.substack.com/Re. Cameron’s idea of looking to Singapore to solve Australia’s housing affordability crisis:https://www.abc.net.au/news/2022-02-06/could-australia-learn-from-singapore-to-make-housing-affordable/100801082Long abstract for Nicole Kagan’s Not So Super paper:https://az659834.vo.msecnd.net/eventsairseasiaprod/production-leishman-public/6d771a2b34594388a5f61afdb368258cLong abstract for Gene’s paper on the Queensland Titles Registry:https://az659834.vo.msecnd.net/eventsairseasiaprod/production-leishman-public/2e33ed5868d340fc80cdd348b3036fd4Long abstract for Cameron’s paper on housing supply:https://az659834.vo.msecnd.net/eventsairseasiaprod/production-leishman-public/56bff701d624428497fb49964ff56f59CreditsThanks to this episode's guests Leonora and Cameron for the great conversations, and to the show’s audio engineer Josh Crotts for his assistance in producing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

Kurtis Lockhart, Executive Director of the Charter Cities Institute, tells us about the benefits of charter cities - cities with their own rules or charter, independent of national or subnational governments. Kurtis argues the best way to implement charter cities is via public-private partnerships (PPPs). Learn about the fascinating work the Charter Cities Institute is involved in around the world with a view to stimulating economic development and lifting millions out of poverty.  About this episode’s guest - Kurtis LockhartKurtis Lockhart is Executive Director & Head of Research at the Charter Cities Institute. Kurtis is also a PhD candidate in political science at the University of Oxford. His research examines the effect of institutional reforms on public goods provision with a regional focus on sub-Saharan Africa. At Oxford he has taught both quantitative methods and African politics. In the field, Kurtis has previously worked as a Research Manager for the International Growth Centre (IGC), for Warc Africa (both in Sierra Leone), and for the ELIMU Impact Evaluation Center in Kenya where he managed the implementation of several randomized control trials across many different sectors (health insurance, rural electrification, tax administration, and legal aid). Kurtis has also completed consulting projects with both Oxford Development Consultancy and with Warc Africa. He holds an MSc in Development Management from the London School of Economics where he graduated top of his class, as well as a BA in Economics and Development Studies (First Class Honors) from McGill University. Find him on Twitter @kurtislockhart.Links relevant to the conversationThe Charter Cities InstitutePodcast Archives - The Future of Development (Charter Cities Institute podcast)Paul Romer: Why the world needs charter citiesThe Charter Cities Institute on Twitter: @CCIdotCityCreditsThanks to the show’s audio engineer Josh Crotts for his assistance in producing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.