The authors acknowledge funding from ARC Discovery Project DP0988368.
Optimal environmental policy design for mine rehabilitation and pollution with a risk of non-compliance owing to firm insolvency*
Version of Record online: 27 MAR 2012
© 2012 The Authors. AJARE © 2012 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd
Australian Journal of Agricultural and Resource Economics
Special Issue: Mineral and Energy Policies
Volume 56, Issue 2, pages 280–301, April 2012
How to Cite
White, B., Doole, G. J., Pannell, D. J. and Florec, V. (2012), Optimal environmental policy design for mine rehabilitation and pollution with a risk of non-compliance owing to firm insolvency. Australian Journal of Agricultural and Resource Economics, 56: 280–301. doi: 10.1111/j.1467-8489.2012.00591.x
Ben White (email: firstname.lastname@example.org), Graeme J. Doole, David J. Pannell and Veronique Florec are in School of Agricultural and Resource Economics, University of Western Australia, Crawley, WA, Australia. Graeme J. Doole, David J. Pannell and Veronique Florec are in Centre for Environmental Economics and Policy, University of Western Australia, Crawley, WA, Australia. Graeme J. Doole is in Department of Economics, Waikato Management School, University of Waikato, Hamilton, New Zealand.
- Issue online: 27 MAR 2012
- Version of Record online: 27 MAR 2012
- Australian Bureau of Agricultural and Resource Economics and Science (2010). Australian Commodity Statistics 2010. ABARES, Canberra.
- Australian Bureau of Statistics (ABS) (2010). Australian System of National Accounts. Australian Bureau of Statistics, Canberra. http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/556894E44C26469ECA2577CA00139858/$File/52040_2009-10.pdf, accessed 20 April 2011.
- 1985). Noncooperative regulation of a nonlocalised externality, Rand Journal of Economics 16, 553–568. (
- 1988). The Theory of Environmental Policy, 2nd edn. Cambridge University Press, Cambridge UK. and (
- 2006). Mining and its Impact on the Environment. Taylor and Francis, London. and (
- 1985). Comparative analysis of alternative policy instruments, in Kneese, A.V. and Sweeney, J.L. (eds), Handbook of Natural Resource and Energy Economics, vol. 1 . Elsevier, New York, pp. 395–460. and (
- 2001). Financial Responsibility for Environmental Obligations: Are Bonding and Assurance Rules Fulfilling their Promise? Resources for the Future Discussion Paper 01-42, Resources for the Future, Washington, DC. (
- 2006). Managing for mine closure. Australian Mining and Petroleum Law Association Yearbook 2006: 464–487. (
- 2012). Public preferences for timeliness and quality of mine site rehabilitation. The case of bauxite mining in Western Australia, Resources Policy. Available from URL: http://dx.doi.org/10.1016/j.resourpol.2012.01.004 [accessed 8 March 2012]. , and (
- 1997). The cost of public funds in Australia, Economic Record 73, 22–34. and (
- 2006). Review of environmental performance bonds in Western Australia, in Fourie, A. and Tibbett, M. (eds), Mine Closure 2006: Proceedings of the First International Seminar on Mine Closure. Australian Centre for Geomechanics, Perth, Western Australia. pp. 75–80. (
- DCCEE (2011). National Inventory Report by Economic Sector 2009. DCCEE, Canberra, Australian Capital Territory.
- Department of Environment and Resource Management (2007). Environmental Management – Mining, Department of Environment and Resource Management, Brisbane, Queensland, http://www.derm.qld.gov.au/environmental_management/land/mining/index.html, accessed 20 Jan 2010.
- Department of Mines and Energy (2007). Environmental Management and Regulation of Mining in Queensland, Department of Employment, Economic Development and Innovation – Queensland Mines and Energy, Brisbane, Queensland. http://www.dme.qld.gov.au/mines/environment.cfm, accessed 20 Jan 2010.
- Department of Mines and Petroleum (2009). Bond Policy Effective 1 July 2008: Mineral Guidelines, Department of Mines and Petroleum, Perth, Western Australia, http://www.dmp.wa.gov.au/836.aspx, accessed 20 April 2011.
- Department of Mines and Petroleum (2011). Policy Options for Mining Securities in Western Australia. Department of Mines and Petroleum, Perth, Western Australia.
- Department of Primary Industries NSW (2006). Rehabilitation Security Deposit Requirements for Mining and Petroleum Titles, ESB20, June, Mineral Resources Division, Department of Primary Industries NSW, Sydney, NSW. http://www.dpi.nsw.gov.au/__data/assets/pdf_file/0020/96131/esb20-Rehabilitation-Security-Deposit-Requirements-for-Mining-and-Petroleum-Titles.pdf, accessed 20 April 2011.
- Department of Primary Industries Victoria (2009). Review of the Mineral Resources (Sustainable Development) Act 1990 – Release of targeted discussion papers, Department of Primary Industries, Melbourne, FL. http://www.dpi.vic.gov.au/DPI/nrenmp.nsf/childdocs/-369C05B2054996AA4A256A1E001F3045-D9E77F4A47EA6484CA25759E001DB6FD-3160097D20197143CA2574D50002AAA7?open, accessed 20 April 2011.
- Department of Resources (2006). Security Policy, Northern Territory Department of Resources – Minerals and Energy, Darwin, Northern Territory. http://www.nt.gov.au/d/Minerals_Energy/Content/File/Forms_Guidelines/AA7-003_200605_SECURITY_POLICY_FINAL_CAB_ENDORSED.pdf, accessed 20 April 2011.
- Department of Resources (2007). Security Calculation Procedure, Northern Territory Department of Resources – Minerals and Energy, Darwin, Northern Territory, http://www.nt.gov.au/d/Minerals_Energy/Content/File/Forms_Guidelines/AA7-013_Security_Calculation_Procedure_Guide.pdf, accessed 25 Jan 2010.
- DMP (2010a). Department of Mines and Petroleum bond policy. DMP, Perth, Western Australia.
- DMP (Department of Mines and Petroleum) (2010b). Policy Options for Mining Securities in Western Australia. Department of Mines and Petroleum, Perth, Western Australia.
- DMP (Department of Mines and Petroleum) (2011). Western Australia’s Mining Security System: Preferred Option Paper, Department of Mines and Petroleum, Perth, Western Australia.
- 2011). Optimal Dynamic Regulation of the Environmental Impact of Mining Across Diverse Land Types. University of Waikato Discussion Paper, Hamilton. and (
- 1996). Optimal pricing of environmental and natural resource use with stock externalities. Journal of Public Economics 62, 31–57. (
- Geosciences Australia (2011). Australian Mine Atlas Data Sheets, Geosciences Australia, Canberra, http://www.australianminesatlas.gov.au/mapping/downloads.jsp#ozmin, accessed 20 April 2011.
- 2000). The law and economics of reclamation bonds, Resources Policy 26, 189–197. (
- ICMM (2005). Financial Assurance for Mine Closure and Reclamation. International Council on Mining and Metals, London, UK.
- 2006). The surety conundrum, in Fourie, A. and Tibbett, M. (eds), Mine Closure 2006: Proceedings of the First International Seminar on Mine Closure, Australian Centre for Geomechanics, Perth, Western Australia. pp. 475–485. (
- 2007). Synthesis: is Alcoa successfully restoring a jarrah forest ecosystem after bauxite mining in Western Australia, Restoration Ecology Supplement 15, 137–144. and (
- 2007). Progressive reduction of liabilities and recovery of financial sureties in recognition of successful rehabilitation in Western Australia. in Fourie, A., Tibbett, M. and Wiertz, J. (eds), Mine Closure 2007: Proceedings of the Second International Seminar on Mine Closure, Australian Centre for Geomechanics, Perth, Western Australia. pp. 365–374. , , and (
- Mineral Resources Tasmania (2008). The Tasmanian Security Deposit System for Mining and Exploration Tenements, Tasmanian Department of Infrastructure, Energy and Resources, http://www.mrt.tas.gov.au/pls/portal/docs/PAGE/MRT_INTERNET_PAGE_GROUP/MRT_EXPLORATION_AND_MINING/MRT_EXPLORATION_LICENCES/GENERAL%20_CONDITIONS/UR2008_02.PDF, accessed 20 April 2011.
- Ministry of Economic Development, New Zealand (2011). Bonds and cash deposits. Worksite Document No. 621551.
- 2007). Global trends in gold mining: towards quantifying environmental and resource sustainability, Resources Policy 32, 42–56. (
- 2010). The environmental sustainability of mining in Australia: key mega-trends and looming constraints, Resources Policy 35, 98–115. (
- National Land and Water Resources Audit (2002). Australian Natural Resources Atlas, Australian Government, Canberra, Australian Capital Territory. http://www.anra.gov.au/topics/land/landuse/index.html, accessed 20 April 2011.
- New Zealand Government (2010). Some Facts about Mining in New Zealand (Press Release Wednesday, 24 March 2010). New Zealand Government, Wellington, New Zealand.
- NSW Ombudsman (2010). Responding to the Asbestos Problem: The need for Significant Reform in NSW, NSW Ombudsman, Sydney, NSW, http://www.ombo.nsw.gov.au/publication/PDF/specialreport/SR_AsbestosProblem_Nov10.pdf, accessed 20 April 2011.
- 2010). Disclaiming onerous property in insolvency: a comparative study, International Insolvency Review 19, 41–63. (
- 2003). Inventory of abandoned mine sites: progress 1999–2002. Geological Service of Western Australia, Record 2003/9, Perth. , and (
- 2009). Financial assurance and mine closure: stakeholder expectations and effects on operating decisions, Resources Policy 34, 227–233. and (
- 1989). Environmental bonds and environmental research in innovative activities, Ecological Economics 1, 95–110. (
- 1990). An econometric analysis of exploration and extraction of oil in the UK continental shelf, The Economic Journal 100, 367–390. (
- 1993). Limits to environmental bonds, Ecological Economics 8, 109–133. , and (
- 1971). The economist’s approach to pollution and its control, Science 173, 502–511. (
- Statistics New Zealand (2010). National Accounts Year Ended March 2010 – Tables. Statistics New Zealand, Wellington, New Zealand.
- 1952). On the Theory of Economic Policy. North-Holland Pub. Co., Amsterdam, the Netherlands. (
- 2010). From Pigou to extended liability: on the optimal taxation of externalities under imperfect financial markets, Review of Economic Studies 77, 697–729. Direct Link: (
- 2011). Environmental Bonds and Environmental Policy for Mining in Western Australia. Discussion Paper. School of Agricultural and Resource Economics University of Western Australia. and (
- World Bank (2009). Financial Surety. World Bank, Washington, DC.
- 2006). Control of accumulating stock pollution by heterogeneous producers, Journal of Economic Dynamics and Control 30, 1105–1130. , and (