Managing resource cycle economics

The economic effects of commodity cycles in mining and energy sectors are a major policy topic in resource-rich countries. The intensity of the resources boom in Australia from 2003 to 2012, and the subsequent downturn, has highlighted the challenges in managing and responding to variations in commodity cycles. The growth and decline phases have had effects at local, regional, state and national levels in Australia creating a number of policy challenges.

This symposium brings together the authors involved in a special issue on Managing Resource Cycle Economics that has been published in the most recent Australian Journal of Agricultural and Resource Economics. The topics include work focused on identifying and analysing economic drivers and impacts, as well as evaluating different policy mechanisms available to manage and ameliorate boom and bust cycles.

The special issue makes a contribution to the national debate about resource cycles in several areas:

• Identifying drivers of resource cycles, with particular focus on the growth of the LNG sector, and the role of China more generally
• Identifying the effects of resource cycles on regional areas, sector productivity, and more widely through impacts on exchange rates
• Identifying prospects for growth into the future and likely importance of China and other key trading partners over time
• Evaluating key policy tools, including the use of royalty and rent taxes, domestic gas reservation policies, and measures to enhance productivity growth.

The symposium includes succinct presentations for each paper in the special issue, followed by an open discussion about the issues raised in the presentations and broader policy considerations in Australia.

This event is presented by the Australian Agricultural and Resource Economics Society, and Crawford School of Public Policy, at The Australian National University.