Here’s another fun fact about economics: “Remittance Economy” refers to the significant role that remittances—money sent back home by nationals working abroad—play in the economies of many Pacific Island countries. Nations like Tonga, Samoa, and Fiji heavily rely on remittances, which can account for a substantial portion of their GDP. These funds help support families, improve living standards, and contribute to national economic stability. The dependence on remittances highlights the interconnectedness of Pacific Island economies with global labor markets and the importance of diaspora communities to their home countries’ economic health.
#Pacific #remittance-economic #economics Image credit: DFAT Flikr credits CC 2.0
In the quest for energy security and economy decarbonisation, pumped hydro energy storage emerges as a way to address intermittency of renewable generation. There is no real question that this resource is significant and available in Australia. However, the scale of pumped hydro projects plays a pivotal role. It is a topic that is animating the current election in Queensland.
Small pumped hydro projects offer benefits such as flexibility in location, lower environmental impact, and quicker implementation. They are cost-efficient for localized needs and involve lower financial risk due to their smaller capital investment requirements. However, their lower energy storage capacity and limited grid support may make them less suitable for large-scale energy demands.
On the other hand, large pumped hydro projects, despite their high initial costs and longer development times, provide substantial energy storage capacity and significant grid stability. They benefit from economies of scale, leading to lower per unit costs and long-term economic benefits. Large projects are instrumental in stabilising the grid and accommodating the variability of renewable energy sources, which is crucial for enhancing energy security. However, there are risks with megaprojects. When mistakes are made they are big ones.
In addressing the twin imperatives of energy security and economy decarbonisation, large pumped hydro projects emerge as a more appropriate scale of investment. Their substantial energy storage capacity and economies of scale ensure cost efficiency over the long term, making them essential for achieving widespread decarbonisation at a competitive cost. For a robust and sustainable transition to a low-carbon future, prioritising large-scale pumped hydro projects is probably the optimal path forward. Let’s invest in the future of energy and secure a sustainable, decarbonised economy.
So a series of small bets, or one big bet. Are bigger batteries better batteries? Which way would you go?
Here’s another fun fact about economics: “Blue Economy” is a term used to describe the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystems. This concept is particularly relevant to Pacific Island nations, which have vast ocean territories and depend heavily on marine resources. The Blue Economy includes activities such as sustainable fishing, marine tourism, and renewable energy (like offshore wind farms). Emphasising the Blue Economy reflects the importance of balancing economic development with environmental conservation in the Pacific region.
#Pacific #economics #blue-economy Image credit: Global Research Development Center
Lytton Advisory 