Economic regulation analysis
Economic regulation is pervasive throughout the economy. Industries such as telecommunications, electricity, water, gas and airports, and many others, have their prices, investment plans and rates of return extensively regulated. Many others, such as in the resources sector, are compelled by regulators to let their competitors access their key assets.
The costs and benefits of regulation are not necessarily shared equally across the community. Attempts to change or introduce new regulatory arrangements require compelling arguments and evidence to manage community issues and sensitivities.
Proposed changes must be based on a clear understanding of the goals and objectives of regulatory regimes. This includes identifying economic and social costs and benefits of existing or proposed legislation, and identifying best practice alternatives.
How ACG can help you
ACG provides expert advice to economic regulators at national and state levels. It also advises governments and private organisations on the impact of proposed regulatory changes on income, output, employment and other effects on industry, communities and regions.
Specialising in development and review of best practice regulation, ACG provides detailed analysis and advice regarding:
- community and universal service obligations
- economic and environmental impact studies using economy-wide models
- corporatisation and privatisation
- access regimes and price regulation
- incentive-based policy instruments
- licensing systems, regulatory frameworks and institutions
- competition in areas with private and public interests.
ACG has advised on landmark regulatory decisions in the electricity and gas industries, and on regulatory issues in the water, rail, ports, airports, telecommunications and banking industries. It has also analysed the impact of regulation regimes governing trade practices, competitive neutrality, consumer protection, utilities, transport, environment, business licensing, public safety, gambling and alcohol, and intellectual property.
Our clients include the Australian Energy Market Commission, Victorian Department of Justice, Department of Treasury and Finance, and Department of Premier and Cabinet, Australian Government Department of Environment, Water, Heritage and the Arts, Victorian Competition and Efficiency Commission, and BHP Billiton.
Contact Jerome
Further reading
Related reports
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Alcohol taxation reform: starting with the wine equalisation tax
The Alcohol Education and Rehabilitation Foundation (AER) commissioned the Allen Consulting Group to investigate how the existing regime of wine taxation impacts the consumption and production of wine in Australia. The report illustrates current inconsistencies in the taxation of alcohol and how the lower rate of tax on cheap wines is contributing to alcohol related harm and encouraging Australian producers to focus on producing for 'volume' rather than 'value'. An economic modeling framework was used to simulate a range of alternative taxation arrangements. -
National saving: A Report to the Treasurer
A key element of the report was that it identified that the ageing of Australia's population held major significance for economic and fiscal policy. The study also identified the importance of national saving, and some of the ways in which national saving could be increased. Two of the major policy changes that were identified and implemented by Government were saving, and funded superannuation. -
The carbon price mechanism and the property sector
This report models the impact of the Clean Energy Future legislation on property businesses, in particular operational and building costs.