PROJECTS

Economic Insights consultants have been involved in a large number of major projects on regulation, competition policy, infrastructure and economic development. Examples of key projects where EI consultants have played prominent roles are outlined below in the following categories.

Economic Regulation
Competition Policy
Infrastructure
Economic Development

Economic Regulation

Report prepared for Anglo American Metallurgical Coal on the Cost of Capital, Stranded Asset Risk and the Socialisation of Costs for QR Network. The report was part of Anglo American Coal's submission in relation to the Queensland Competition Authority's draft decision to not approve QR Network's 2009 Draft Access Undertaking. Click here to view our report.
Advice to the Australian Energy Market Commission on index specification issues for the use of total factor productivity (TFP) in energy network regulation. Click here to view our report on the current state of knowledge on the specification of energy network TFP growth and areas where further work needs to be done.
Advice to the New Zealand Commerce Commission on setting the Default Price Path X factor for electricity distribution businesses. Click here to view our report on the productivity performance of electricity distribution taking account of sunk costs and financial capital maintenance.
Report on the productivity performance of Jemena Gas Networks' New South Wales gas distribution system. Click here to view our report which formed appendix 6.7 to Jemena's Access Arrangement Information filing.
Update of Australia Post's aggregate and reserved productivity performance. Click here to view our report which was submitted to the ACCC as part of Australia Post's Draft Price Notification.
Report for Australia Post on the distribution of the benefits from productivity improvements among key stakeholder groups comprising consumers, input suppliers and the owner. The results of this study show that most of the benefits from Australia Post's reserved service productivity improvements over the past 12 years, and considerably more than all of the benefits over the last seven years, have been passed on to consumers in the form of real price reductions. Click here to view our report which was submitted to the ACCC as part of Australia Post's Draft Price Notification.
International benchmarking of postal service productivity performance for Australia Post and six overseas postal services. Click here to view our report which was submitted to the ACCC as part of Australia Post's Draft Price Notification.
Preparation of reports for the New Zealand Commerce Commission on productivity-based regulation taking account of sunk costs and financial capital maintenance. These reports represent a significant advance in the theory of network regulation. Despite the importance of both sunk costs and financial capital maintenance to network regulation, neither has been allowed for in previous applications of productivity-based regulation. Click here to view our technical report on the theory of productivity-based regulation. Click here to view our report on asset valuation methods and productivity-based regulation.
Expert advice to the Australian Energy Market Commission on the design and application of a total factor productivity (TFP) based methodology for energy network regulation (2008-09). Click here to view our report for the AEMC on energy network TFP sensitivity analysis.
Advice to the Australian Energy Market Commission on whether currently available data and regulatory reporting requirements are sufficiently robust to support the implementation of a total factor productivity (TFP) based regulation methodology for the electricity and gas distribution and transmission industries (2008-09). Click here to view our report for the AEMC on assessment of data currently available to support TFP-based network regulation.
Expert advice to the New Zealand Commerce Commission relating to regulatory economic principles, guidelines and the regulatory regimes for electricity lines businesses, gas pipelines businesses and other regulated businesses (2008-09).
Various reports on cost of capital, asset valuation, cost allocation and pricing issues for airports, electricity, gas and water infrastructure for regulators, providers and major users (1996-2008).
Economic rationale and form of block exemption orders for liner shipping conference agreements for the Competition Commission of Singapore (2006).
Third party access and price regulation of the Dalrymple Bay coal loading facility in Queensland for Queensland Treasury (2000).
The form of price control for regulation of prices in the electricity distribution and retail sector in New South Wales for Energy Australia for an IPART price review (1999).
The regulation framework for the electricity industry in Queensland for the Queensland Competition Authority (1999).
Monopoly prices and third party access criteria in relation to the Cairns and Mackay Port Authorities and the Brisbane Markets Authority for the Queensland Treasury (1999).
Third party access price issues with respect to the Hunter Rail Network for the New South Wales Minerals Council (1998-99).
The criteria for deciding whether government businesses should be declared as monopolies for the purpose of price monitoring and competitive neutrality issues for the Queensland Competition Authority (1997).
Expert witness on pricing principles and various cost of capital issues in the gas, coal mining and electricity industries in relation to the price of gas supplied by the South West Queensland producers to major users in South Australia (1996).

Competition Policy

Expert witness for the Commission of Inquiry into the fuel price subsidy in Queensland (2007).
Report on the competition implications and public benefits of the Queensland Water Grid Manager and associated asset aggregations and regulatory arrangements (2007).
Expert report on market definition and competition issues in relation to the use of a bulk cargo unloading crane system at Geelong Port (2007).
Advice on the competition implications of joint ownership by banks of an EFTPOS system (2007).
Assessment of the competitive effects of telecoms mergers and vertical integration issues in Portugal (2006).
The competitive effects and public benefits of licensing restrictions in wagering and gaming for TabCorp (2005).
Assessing the competition implications of Telstra's broadband prices and the bundling of telecommunications products including the use of imputation tests (2004).
Expert witness for Queensland Crown Law on collusive price fixing arrangements and associated damages in the concrete industry in South East Queensland (1996-2001).
A public benefit assessment of restrictions on competition in the provision of compulsory third party insurance (2005).
The competition implications of vertical and horizontal integration in the electricity industry in Australia for electricity utilities (2004-05).
Airline alliances, market structure and efficiency, prepared for Qantas in relation to the proposed alliance with Air New Zealand (2003).
Market definition and competition issues in relation to the allocation of timber milling licenses for the Queensland Department of Primary Industries (2003).
Adviser to the Australian Competition and Consumer Commission on predatory pricing (1996).
Public benefit effects of the takeover of Queensland Independent Wholesalers by Davids for a private client (1996).
Adviser and expert witness for the Trade Practices Commission in the proposed takeover by Coles Myer Limited of Foodland Australia Limited (1994).
Adviser and expert witness for the Trade Practices Commission in the proposed takeover by QUF Industries Limited of Port Curtis Dairy Association Ltd (1994).
Economic adviser for Sagasco (a major gas exploration and distribution company) in a takeover bid by Santos.
Economic adviser and expert witness for Queensland Independent Wholesalers in the proposed takeover by Davids Holdings Pty Ltd. Advised on market definition, potential competition, barriers to entry and vertical integration.

Infrastructure

Econometric estimation of cost functions and productivity measures for benchmarking Australian, New Zealand and US gas distribution businesses (2007).
Assessment of the economy wide effects of closure of the Tiwai Point aluminium smelter in New Zealand (2006).
Report on the future of infrastructure in Australia, focussing on regulatory and other policy issues affecting investment including principles and frameworks for effective regulation, competition and vertical integration issues, the effective use of public private partnership arrangements, taxation arrangements and case studies (2005).
Quantifying the economic impact of alternative road, rail and public transport investment and pricing strategies using a general equilibrium model for the Queensland Commission of Audit (1996).

Economic Development

Dr Fallon has been the team leader or lead author for comprehensive economic development reports on Papua New Guinea and virtually all Pacific Island countries since 1992. The reports have covered most aspects of public policy relevant for economic development, including the enabling environment and role of government, public enterprise reform and privatisation options, and social and environmental issues.
Dr Fallon was the team leader and macroeconomist for a facility to provide advice on economic policy, economic development planning and infrastructure management in Palau for the Asian Development Bank (2007-2009).
Dr Fallon was the lead adviser to the World Bank and Privatisation Commission of Papua New Guinea on privatisation issues and strategies for all entities to be privatised in Papua New Guinea and project manager for the sale of the major government-owned commercial bank and compulsory third party insurer (2000-02).
Country risk assessment of various Asian, Middle East and Pacific Island countries for private clients (1996-02). This involved the development of a comprehensive risk assessment framework and its application to several major countries including China, India, Indonesia, Pakistan, Papua New Guinea and Thailand.
Dr Fallon was the lead author for a prominent Industry Commission study in 1990 titled: "Strategic Trade Theory the East Asian Experience".