Australia's Critical Minerals Strategy"

Smyth, Russell and Vespignani, Joaquin (2023): Australia's Critical Minerals Strategy".

Abstract

We thank the Department of Industry, Science and Resources (DISR) for the opportunity to contribute to the development of a national critical minerals strategy. We agree with the DISR that Australia has a narrow window of opportunity to capitalize on the very high demand and prices of critical minerals in order to become the world leader in clean energy production. While the Discussion Paper touches on several issues relevant to developing a critical minerals sector in Australia, our submission focuses on achieving a level of investment and output in the sector, consistent with global decarbonization and global net zero by 2050. Specifically, we proffer a tax reform proposal in the form of a Decarbonization Corporate Bond that, we believe, would mitigate, or eliminate, most of the factors inhibiting investment in critical minerals.

• Item Type: MPRA Paper
• Language: English
• Keywords: Critical minerals, energy, Australia
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; E - Macroeconomics and Monetary Economics > E0 - General > E00 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources

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Department of Industry, Science and Resources (2022). Australia's Critical Minerals Strategy: Discussion Paper. Canberra: Commonwealth of Australia. https://storage.googleapis.com/converlens-au- industry/industry/p/prj2342ca7b5fb3e8e506a42/public_assets/australias-2023-critical-minerals-strategy-discussionpaper.pdf

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Smyth, R., & Vespignani, J. (2022). Increasing Australian Lithium Production to Meet Electric Vehicles and Net Zero Global Targets: A Decarbonisation Tax Discount? Economic Papers: A Journal of Applied Economics and Policy, 41(4), 385-389.