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A tale of two states: Development and regulation of coal bed methane extraction in Queensland and New South Wales, Australia

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  • Cronshaw, Ian
  • Quentin Grafton, R.

Abstract

The paper reviews coal bed methane developments and their regulation in the states of Queensland and New South Wales, Australia. Queensland, like Pennsylvania in terms of shale gas developments in the US, has adopted a ‘go grow’ and a learning-by-doing approach to gas extraction. In Queensland, this approach has supported the rapid development of coal-bed methane as an energy source for domestic use, and since 2014, for export markets. By contrast, New South Wales has adopted a ‘go slow’ approach akin to that followed by New York State in terms of shale gas, but for coal-bed methane extraction. The different pathways followed by the two states allows for a comparison of regulatory change, why regulations have differed, and their benefits and costs. Differences are explained by: (1) the dynamic and fragile nature of a ‘social licence’; (2) the nature of the local concerns in the two states; and (3) how and why individuals and communities might support resource developments that impose environmental and other risks. Overall, the study offers a guide as to how and why resource policies have developed differently in neighbouring.

Suggested Citation

  • Cronshaw, Ian & Quentin Grafton, R., 2016. "A tale of two states: Development and regulation of coal bed methane extraction in Queensland and New South Wales, Australia," Resources Policy, Elsevier, vol. 50(C), pages 253-263.
    • Handle: RePEc:eee:jrpoli:v:50:y:2016:i:c:p:253-263
    DOI: 10.1016/j.resourpol.2016.10.007
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    References listed on IDEAS

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    1. R. Quentin Grafton & N. Ross Lambie, 2014. "Australia's Liquefied Natural Gas Sector: Past Developments, Current Challenges and Ways Forward," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(4), pages 509-522, December.
    2. Fleming, David A. & Measham, Thomas G., 2015. "Local economic impacts of an unconventional energy boom: the coal seam gas industry in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(1), January.
    3. Blohm, Andrew & Peichel, Jeremy & Smith, Caroline & Kougentakis, Alexandra, 2012. "The significance of regulation and land use patterns on natural gas resource estimates in the Marcellus shale," Energy Policy, Elsevier, vol. 50(C), pages 358-369.
    4. Moffat, Kieren & Zhang, Airong, 2014. "The paths to social licence to operate: An integrative model explaining community acceptance of mining," Resources Policy, Elsevier, vol. 39(C), pages 61-70.
    5. Parsons, Richard & Lacey, Justine & Moffat, Kieren, 2014. "Maintaining legitimacy of a contested practice: How the minerals industry understands its ‘social licence to operate’," Resources Policy, Elsevier, vol. 41(C), pages 83-90.
    6. Owen, John R. & Kemp, Deanna, 2013. "Social licence and mining: A critical perspective," Resources Policy, Elsevier, vol. 38(1), pages 29-35.
    7. Zhang, Airong & Moffat, Kieren, 2015. "A balancing act: The role of benefits, impacts and confidence in governance in predicting acceptance of mining in Australia," Resources Policy, Elsevier, vol. 44(C), pages 25-34.
    8. Measham, Thomas & Fleming, David & Schandl, Heinz, 2015. "A Conceptual Model of the Socioeconomic Impacts of Unconventional Fossil Fuel Extraction," MPRA Paper 68523, University Library of Munich, Germany, revised 24 Nov 2015.
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    Cited by:

    1. Marcos-Martinez, Raymundo & Measham, Thomas G. & Fleming-Muñoz, David A., 2019. "Economic impacts of early unconventional gas mining: Lessons from the coal seam gas industry in New South Wales, Australia," Energy Policy, Elsevier, vol. 125(C), pages 338-346.
    2. Liu, Lu & Zhao, Qiuhong & Bi, Yanlin, 2020. "Why rent-seeking behavior may exist in Chinese mining safety production inspection system and how to alleviate it: A tripartite game analysis," Resources Policy, Elsevier, vol. 69(C).
    3. McCrea, Dr Rod & Walton, Dr Andrea & Jeanneret, Ms Talia, 2020. "An opportunity to say no: Comparing local community attitudes toward onshore unconventional gas development in pre-approval and operational phases," Resources Policy, Elsevier, vol. 69(C).
    4. Drew, Joseph & Dollery, Brian Edward & Blackwell, Boyd Dirk, 2018. "A square deal? Mining costs, mining royalties and local government in New South Wales, Australia," Resources Policy, Elsevier, vol. 55(C), pages 113-122.
    5. Dumbrell, Nikki P. & Adamson, David & Wheeler, Sarah Ann, 2020. "Is social licence a response to government and market failures? Evidence from the literature," Resources Policy, Elsevier, vol. 69(C).
    6. Valle de Souza, Simone & Dollery, Brian & Blackwell, Boyd, 2018. "An empirical analysis of mining costs and mining royalties in Queensland local government," Energy Economics, Elsevier, vol. 74(C), pages 656-662.

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