Seasonal storage for solar thermal systems in Australia?

Seasonal storage systems have been operating in various European countries since 1985. Combined with solar collectors, these systems are known as ‘central solar heating plants with seasonal storage’ (CSHPSS). While these systems have been shown to be technically feasible, their cost is still too high to make them competitive with fossil fuels.

In Australia, we have quite different conditions to those countries where CSHPSS have been trialled. In general, we experience higher radiation levels, ambient temperatures and cooling loads. Our heating loads and energy prices are also usually lower. As a result, any evaluation of CSPSS operating in a European context may not be valid for Australian conditions. To the authors’ knowledge, no evaluation of these systems has been carried out for Australia.

This paper therefore attempts an initial assessment of these systems and their viability for Australia. The paper first describes the various types of CSHPSS and then reviews their current status. The performance of one type of CSHPSS operating in several locations of Australia has been predicted using a TRNSYS model. The simulations indicated that the design guidelines for Europe are inappropriate for Australia and would result in greatly over-sized systems.

An indication of the financial viability of the system was determined by calculating a simple payback period for a variety of fossil fuels. This type of seasonal storage systems appears to be financially attractive in areas of southern Australia where the solar system is displacing LPG.

A model of the Australia-US exchange rate

This paper develops a model of exchange rate determination within an error correction framework. The intention is to identify both long and short term determinants that can be used to forecast the AUD/US exchange rate. The paper identifies a set of significant variables associated with exchange rate movements over a twenty year period from 1984 to 2004. Specifically, the overnight interest rate differential, Australia's foreign trade-weighted exposure to commodity prices as well as exchange rate volatility are variables identified that are able explain movements in the AUDIUS dollar relationship. An error correction model is subsequently constructed that incorporates an equilibrium correction term, a short-term interest rate differential variable, a commodity price variable and a proxy for exchange rate volatility. The model is then used to forecast out of sample and is found to dominate a naIve random walk model based on three different metrics.

Housing price diffusion pattern of Australia's state capital cities

The ripple effect of house prices within metropolitan areas has recently been recognised by researchers. However, it is very difficult to formulate and measure this effect using conventional house price theories particularly in consideration of the spatial locations of cities. Based on econometrics principles of the cointegration test and the error correction model, this research develops an innovative approach to quantitatively examine the diffusion patterns of house prices in mega-cities of a country. Taking Australia's eight capital cities as an example, the proposed approach is validated in terms of an empirical study. The results show that a 1-1-2-4 diffusion pattern exists within these cities. Sydney is on the top tier with Melbourne in the second; Perth and Adelaide are in the third level and the other four cities lie on the bottom. This research may be applied to predict the regional housing market behavior in a country.

Australia's radical predatory pricing reforms : what business must know

Radical changes to the Trade Practices Act have the potential to affect significantly, the ability of businesses to engage in vigorous price competition. These changes are designed to prohibit what is colloquially referred to as predatory pricing; the practice of a firm temporarily reducing its prices to a level designed to eliminate its competitors so that, free of competition, it can thereafter, lift them to supra-competitive levels. Unfortunately, because of its scope and the ambiguous new concepts it employs, the section has the potential to apply to all forms of vigorous.price competition and creates significant risks for those businesses who.seek to compete with their rivals by systematically, or irregularly, selling at lower prices than they do. This note examines the section's nature and scope and identifies the pitfalls that it presents for such firms.

Australia's radical predatory pricing reforms: what business must know

Radical changes to the Trade Practices Act have the potential to affect significantly the ability of businesses to engage in vigorous price competition. These changes are designed to prohibit what is colloquially referred to as predatory pricing; the practice of a firm temporarily reducing its prices to a level designed to eliminate its competitors so that, free of competition, it can thereafter lift them to supra-competitive levels. Unfortunately, because of its scope and the ambiguous new concepts it employs, the section has the potential to apply to all forms of vigorous price competition and creates significant risks for those businesses who seek to compete with their rivals by systematically, or irregularly, selling at lower prices than they do. This note examines the section’s nature and scope and identifies the pitfalls that it presents for such firms.

Longitudinal study of Consumer Price Index (CPI) trends in core and non-core foods in Australia

Objective: This study examined trends in the price of healthy and less-healthy foods from 1989 to 2007 using the Australian Consumer Price Index (CPI).

Methods: CPI food expenditure classes were classified as 'core' or 'non-core'. Trends in the CPI were analysed to examine the rise in prices of core compared with non-core foods.

Results: On average, the CPI for core foods has risen at a slightly higher, though not statistically significant, rate than non-core foods. Furthermore, selected groupings reveal interesting patterns. 'Bread' has risen in price significantly more than 'cakes and biscuits', and 'milk' has risen in price significantly more than 'soft drinks, waters and juices'.

Conclusions and implications: This investigation of food price trends reveals notable differences between core and non-core foods. This should be investigated further to determine the extent to which this contributes to the higher prevalence of diet-related diseases in low socio-economic groups.

Is a healthy diet affordable and accessible in the city of Yarra, Victoria Australia? An analysis of cost disparity and nutritional choices

This study aimed to examine cost disparity and nutritional choices within the
City of Yarra (Yarra), targeting three suburbs that have low- and high-rise
estates: Richmond, Fitzroy, and Collingwood. The healthy food basket
(HFB) was modeled on the Queensland Healthy Food Access Basket for a
six-person family for a fortnight and was constructed to include food items
that are common to ethnic groups living in Yarra. The HFB food item costs
were sampled across 29 food outlets in Yarra. The average cost of HFB per fortnight
for a family of six was significantly lower in Richmond (Mean = $419.26)
than in Collingwood (Mean = $519.28) and in Fitzroy (Mean = $433.98). While
costs for cereal groups, dairy, meats and alternatives, and non-core were
comparable across the suburbs, significant differences were noticed for fruit,
legumes and vegetables. Geographic location alone explained 54% of the
variance in HFB price (F_2,26 = 15.23, p < 0.001) and 32.7% in the variance of
fruit, vegetable and legumes (F_2,26 = 7.72, p < 0.001). The effect of geographic
location remained consistent after controlling for the type of food
outlets. The type of food outlets had a non-significant effect on the variance
of prices. Richmond had a greater number variety of fruit, vegetables, and
legumes (F_{2, 26} = 5.7, p < 0.01) and an overall lower number of missing items
(F_{2, 26} = 3.9, p < 0.05) than Collingwood and Fitzroy. The diversity of food
available in the three suburbs was more likely to reflect the Vietnamese,
Chinese and East-Timorese shopping pattern than the rest of other ethnic

Estimating impacts of consumer prices on house prices

Real estate is widely considered as a reliable hedge of inflation rate and there have been many literatures examining the inflation-hedging characteristics of the real estate.  The study described in the paper focuses on testing the significances of impacts of consumer price on house price in eight Australia's capital cities.  The Autoregressive Distributed Lag model is introduced to obtain  the estimates of the coefficient.  The significances of the impacts are defined as the accept probability of t statistics of the coefficients.  Analyses and comparisons of these significances suggested that the impacts of consumer prices on house prices depend on the inherent characteristics of cities. 

Generic medicines in Australia : business dynamics and recent policy reform

This article describes the role of generics in the Australian prescription drug market and patterns of business activity in this dynamic market segment. The Pharmaceutical Benefits Scheme (PBS) is the central mechanism for the supply of prescription medicines. PBS prices are arrived at through cost-effectiveness analyses comparing new products against already available products and therapies. In this system, prices do not operate effectively as incentives for consumers or prescribers to choose generics, and their market share was historically marginal. In recent years, generics suppliers achieved a growing market share through discounts (trading terms) to pharmacists. It is estimated that around 30% of PBS scripts, representing around 15% of PBS sales by value, are now filled with generics. Complex changes to the PBS were introduced in 2007, to be phased in over the period to 2012, aimed at increasing the scope for cost benefits to the government, and to lesser extent consumers, from the expanding availability of generic medicines.

Understanding residential house prices : examining the contribution of social area analysis

A complete understanding of residential housing markets, particularly in relation to variations in house prices both within and between suburbs, continues to present challenges to property researchers and forecasters. Factors affecting changes in housing demand are not yet completely understood, and accordingly market changes cannot always be confidently predicted. Most urban cities contain precincts that have high or low house values at the same time, regardless of characteristics such as distance to the city centre, location of transport or topography. Exactly why these variations in suburb values occur is often unclear, although local residents are able to easily identify differences between the status of each suburb, especially when one area is clearly perceived as superior to another. Consequently, houses in premium suburbs are sold for substantially more than houses in other areas, primarily due to this perceived higher demand. An understanding of reasons behind varying levels of buyer demand has always been difficult to fully encapsulate in housing studies, even though clear links have been observed between housing affordability and the type of inhabitant that would live in a particular area. This study confirms that traditional economic indicators can not always observe the degree of purchaser and vendor willingness in the residential property market, as per the International Valuation Standards Committee definition of market value, and substantial consideration must also be given to characteristics of individual buyers and sellers within the marketplace. No longer can the focus be narrowly focussed just on endogenous factors such as interest rates and inflation levels.
Accordingly, this research draws the disciplines of demography and housing research closer together and looks to social indicators for an insight into the level of house prices. To establish this link, a two-stage process is adopted where social area analysis initially identifies the characteristics of suburbs within an urban area. This information is then used to examine variations in suburb values, resulting in a clearer understanding of the relationship between demographic variables and house prices. This research analysed changes in the value of established residential house prices in Melbourne, Australia as well as the relationship with social structure. The added dimension of time highlighted change, with data drawn from 1996 and 2001. The results confirmed the existence of strong linkages between social constructs and established house prices. Whilst acknowledging that the overall level of house values is influenced by external economic and political factors, differences between suburb values can be explained by demographic variables. The results confirm that increased emphasis must be placed upon demography when seeking to understand variations in residential property values between urban areas.

A panel data analysis of the determinants of oil consumption : the case of Australia

The goal of this paper is to examine the determinants of oil consumption for a panel consisting of six Australian States and one territory, namely Queensland, New South Wales, Victoria, Tasmania, South Australia, Western Australia, and the Northern territory, for the period 1985–2006. We find that oil consumption, oil prices and income are panel cointegrated. We estimate long-run elasticities and find that oil prices have had a statistically insignificant impact on oil consumption, while income has had a statistically significant positive effect on oil consumption.

Are the Australian and New Zealand stock prices nonlinear with a unit root?

Whether or not stock prices are characterized by a unit root has important implications for policy. For instance, by applying unit root tests one can deduce whether stock returns can be predicted from previous changes in prices. A finding of a unit root implies that stock returns cannot be predicted. This paper investigates whether or not stock prices for Australia and New Zealand can be characterized by a unit root process. An unrestricted two-regime threshold autoregressive model is used with an autoregressive unit root. Among the main results, it is found that the stock prices of both countries are nonlinear processes that are characterized by a unit root process, consistent with the efficient market hypothesis.

The residential demand for electricity in Australia : an application of the bounds testing approach to cointegration

This paper reports estimates of the long- and short-run elasticities of residential demand for electricity in Australia using the bounds testing procedure to cointegration, within an autoregressive distributive lag framework. In the long run, we find that income and own price are the most important determinants of residential electricity demand, while temperature is significant some of the time and gas prices are insignificant. Our estimates of long-run income elasticity and price elasticity of demand are consistent with previous studies, although they are towards the lower end of existing estimates. As expected, the short-run elasticities are much smaller than the long-run elasticities, and the coefficients on the error-correction coefficients are small consistent with the fact that in the short-run energy appliances are fixed.

The ripple effect in house price fluctuations in Australia

The differences in economy, society, demography and geography in different regions are main reasons which cause disparities in regional house prices. Three theories, namely ripple effect hypothesis, convergence and efficient market hypothesis, are used to examine price fluctuations in spatial dimension amongst eight housing markets in Australian state capital cities.

House, home and dwellings - in an Australian context

Theoretical evidence in the behavioural and social sciences has shown the home to be a phenomenon borne of the complex relationship between individuals and their environment. A qualitative assessment of the specific home experiences of 12 case studies is offered to establish an understanding of home within a particular socio-cultural context in Australia. The thesis contends that the affective home has primacy in the home experience.