Well isn’t it fun to watch the current debate on energy in Australia. A lack of leadership: a raft of novel ideas mired in uncertainty and other potential social harm (Snowy River Part Deux); the desire to subsidise (cash, environmental standards, and water) and continue to mine a commodity that the rest of the world doesn’t want at potential expense of the reef ; and the sudden nationalistic fervour to buy back or subsidise coal power plants that have reached the end of their operational life (Liddell and Hazelwood)
So it’s probably time to dust off one of my favourite expressions about bad policy:
Bad ideas, he explained are like cockroaches: no matter how many times you flush them down the toilet, they just keep coming back
The current notion that the former nation’s assets, that are now owned by private corporations, and need to be re-nationalised or subsidised, then suggest that privatisation of public assets is not the answer. I would be delighted is some student needed a project and decided to do a quick analysis on the Net Present Value (NPV) of the decision to privatise public assets.
Benefits of the decision include:
Costs of the decision include: