Assessing the Trade‐Offs of Increased Mining Activity in the Surat Basin, Queensland: Preferences of Brisbane Residents Using Nonmarket Valuation Techniques

type="main" xml:id="ajar12025-abs-0001"> The mining boom in Australia since 2003 has produced significant economic benefits for regional, State and National economies, creating new job opportunities and revenue flows. Despite the contribution of the resources sector to economic growth, questions are frequently raised about the concomitant negative social, economic and environmental impacts. The Surat Basin in southern Queensland is a traditional agricultural region with a small but growing coal mining sector and a rapidly developing liquefied natural gas industry (mainly associated with extracting coal seam gas). In this paper, the preferences of residents in Brisbane, the State capital, are explored in relation to the relative importance of social, economic and environmental impacts of the resource boom in the Surat Basin. A choice modelling experiment was conducted to assess the trade-offs Brisbane residents would make (in monetary terms) between the economic benefits and the associated costs of increased mining activity on local communities. The results identify the strength of concerns about community and environmental impacts and can potentially be used to help evaluate the net benefits of resource development.

[1]  N. Hanley,et al.  Modeling preference heterogeneity in stated choice data: an analysis for public goods generated by agriculture , 2009 .

[2]  J. Bennett,et al.  Estimating Society's Willingness to Pay to Maintain Viable Rural Communities , 2004 .

[3]  Review of the Australian Economy 2008–09: Recessions, Retrenchments and Risks , 2009 .

[4]  John Rolfe,et al.  Assessing development options in mining communities using stated preference techniques , 2011 .

[5]  John Rolfe,et al.  Mining Developments and Social Impacts on Communities: Bowen Basin Case Studies , 2009 .

[6]  Wiktor L. Adamowicz,et al.  Research, part of a Special Feature on Balancing Ecology and Community using Cumulative Effects Models Cumulative Effects Planning: Finding the Balance Using Choice Experiments , 2012 .

[7]  John M. Rose,et al.  Design Efficiency for Non-Market Valuation with Choice Modelling: How to Measure it, What to Report and Why , 2008 .

[8]  John Rolfe,et al.  Coal mining and the resource community cycle: A longitudinal assessment of the social impacts of the Coppabella coal mine , 2009 .

[9]  Kerry Carrington,et al.  Assessing the social impacts of the resources boom on rural communities , 2011 .

[10]  S. Hajkowicz,et al.  The relationship between mining and socio-economic well being in Australia's regions , 2011 .

[11]  M. Kragt,et al.  Accounting for Nonmarket Impacts in a Benefit-Cost Analysis of Underground Coal Mining in New South Wales, Australia , 2012, Journal of Benefit-Cost Analysis.

[12]  P. Garton.  The Resources Boom and the Two-speed Economy , 2008 .

[13]  Kate Penney,et al.  Opportunities and Challenges Facing the Australian Resources Sector , 2012 .

[14]  John M. Rose,et al.  Applied Choice Analysis: List of tables , 2005 .

[15]  John Rolfe,et al.  Lessons from the Social and Economic Impacts of the Mining Boom in the Bowen Basin 2004-2006 , 2007 .

[16]  David Brereton,et al.  Managing the cumulative impacts of coal mining on regional communities and environments in Australia , 2010 .

[17]  John M. Rose,et al.  Applied Choice Analysis: List of tables , 2005 .

[18]  John M. Rose,et al.  Applied Choice Analysis: A Primer , 2005 .

[19]  W. M. Corden.  Dutch Disease in Australia: Policy Options for a Three‐Speed Economy , 2012 .

[20]  D. Hensher,et al.  Stated Choice Methods: Analysis and Applications , 2000 .

[21]  Toni Darbas,et al.  Surat Basin scoping study. Enhancing regional and community capacity for mining and energy driven regional economic development. Report to the Southern Inland Queensland Area Consultative Committee , 2008 .

[22]  James Goodman,et al.  The Minerals Boom and Australia's Resource Curse , 2008 .

[23]  Ben White,et al.  Public preferences for timeliness and quality of mine site rehabilitation. The case of bauxite mining in Western Australia , 2012 .

[24]  Fiona Solomon,et al.  Social dimensions of mining: Research, policy and practice challenges for the minerals industry in Australia , 2008 .

[25]  C. Norman.  Rule of Law and the Resource Curse: Abundance Versus Intensity , 2009 .

[26]  John Rolfe,et al.  The Economic Contribution of the Resources Sector by Regional Areas in Queensland , 2011 .

[27]  I. Krinsky,et al.  On Approximating the Statistical Properties of Elasticities , 1986 .