Content uploaded by Stavros Kalogiannidis
Author content
All content in this area was uploaded by Stavros Kalogiannidis on Dec 21, 2020
Content may be subject to copyright.
International Journal of Economics and Business Administration
Volume VIII, Issue 4, 2020 pp. 994-1010
Impact of Plant Closures on Urban and Regional
Communities: A Case Study of South Australian Gas Industry
and its Workers
Submitted 10/10/20, 1st revision 28/10/20, 2nd revision 24/11/20, accepted 15/12/20
Stavros Kalogiannidis
1
Abstract:
Purpose: This research paper has been compiled from the articles and journals of various
scholars. The elements and factors, which affected the plant closure and its impact on the
economical fields, are analyzed at depth.
Design/Methodology/Approach: The economic condition based on geographical scenario
along with the case study on the Limestone Coast region of South Australia is vividly
discussed. In other words, the paper has thrown down an in-depth analysis of the Pine
plantations and Plan for the acceleration of electrical as well as industrial allocations and
the role of gas on the Limestone Coast that had generated premium wine.
Findings: There were four scenarios planned prior to proceeding with the work as well. At
the same time, it also found different stakeholders involved in agricultural practices as well.
Hence, it has focussed on the overall mission of the company.
Practical Implications: The study had emphasized the methods and material of qualitative
that had dealt with the case study of the Lime industry as well.
Originality/value: This study contributes by supporting that conceptual, strategic, and
technical competencies have a significant relationship with competitive intelligence and is
achievable to be used by goverments in region and local economies.
Keywords: Regional economy, gas industry.
JEL codes: R10, O13, O18, O47, O56
Paper type: Research paper.
Acknowledgements: Work by the author were funded and supported by the School of
Economic Sciences, Department of Regional and Cross-Border Development of the
University of Western Macedonia, Greece .
1
Adjunct Lecturer, Department of Regional and Cross Border Development, University of
Western Macedonia, Greece, ORCiD: https://orcid.org/0000-0002-2337-5775, e-mail:
stavroskalogiannidis@gmail.com
Stavros Kalogiannidis
995
1. Introduction
The plants provide a livelihood to a huge number of populations in the region, in any
state or country. The closure of plants results in loss of livelihood for those people
and attributes go to large scale of displacement of workers that have an impact on
both the developing and developed economy of a country. The sustainability of the
rural and urban economy has been an area of significance for economists and the
closure of plants affects the economies. The reasons for closure are important for
research and also generate concerns about public policies in the region (Beer, 2018).
The researchers need to find how the communities respond to the closure, and what
the effects on the labor market are. Other researches that need to be conducted are
mainly on the impact of public policies and how effective is the labor market in
assisting the labor. The major aspect of the research is an analysis of regional
development, the reaction of the locals, policies, and market dynamics. This research
directs on the extraction process, mining, and help locals in the particular region.
The research will also project on the effects of the closure of the plant, both negative
and positive, in the region. These are the changes in the economy, employment
opportunities, diversity and demography, infrastructure, and the services for the
concerned area.
The research is based on the closure of plants in an urban community, situated in
Australia. The stakeholders have a lot of concerns regarding the closure and
perspectives for strategies that would profit them. This paper includes the methods
used for understanding development in society and the economy of the region
locally and with respect to the country. How the supply chain will be affected, the
labor requirements that need to be fulfilled, the benefits the regions would receive
according to the state developed royalties for the public, and the corporate social
responsibility that should be undertaken. All these methods will vary and help in
defining its effectiveness in the region.
According to the concept of Staples Theory, the profit generated depends on the
inputs and outputs of resource management and it promotes economic activities
(Marcos-Martinez et al., 2019). The driving forces in countries rich with resources
are low when compared to the population. The change in the economy and the
demography highlights on dynamics of the process. Resource-rich countries like
Australia, New Zealand, and Canada have developed historically in all ways, food
supply management, and the supply of minerals to other nations around the world.
For a quite a long time Australia has been a chief export met if various natural
resources such as coal and iron ore around the world, which earned it a title of
World's quarry. From 2018, Australia suppressed Qatar in the export of natural gas.
With the increased exports of natural gas, the price in the country rises from $4 in
2012 to $12 in 2018 per gigajoule. The increase in the price of gas in the domestic
market has created pressure on the nation's economy. In other words, it can be said
that to meet global demands, the manufacturing units are concerned about protecting
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
996
the supply for domestic purposes. The regions of resource extraction mostly struggle
in maintaining the profits, especially during the initial phases.
Therefore, it is significant to consider the examples that will help to overcome this
challenge (Witt et al., 2018). This paper will focus on the best option available for
the locals in the region of extraction and how the energy resources can be useful to
the people and stakeholders related to the plant. The paper has examined the best
possible ways for the development and growth of the region.
2. Literature Review
The literature review evaluates the whole report that is created by examining and
scrutinizing the literature matters of the present context. The literature review
portion is very essential in academic writings. It provides a vivid knowledge about
the topic which comes along with the extracted part of various journals by different
researchers. As a matter of fact, the literature review gives a clear concept of the
theory and methodological ideas of the related context. On the other hand, it is to be
remembered that the literature review cannot be treated as the original research
work. It acts as a synopsis of the actual academic paper. The plant closure system is
mostly benefitting the local host areas. They are gaining their resources by
extraction. This is the most basic issue that leads the condition to reach a higher
degree.
In Australia, these local host areas are very dominant in nature which causes the
situation to change day by day. Such a plant closure system has great impact on the
regional financial situation as well as on geographic scenarios. A case on this topic
has been discussed in this context. The whole analysis and the fact of the case are
reviewed lucidly. The occurrence of this case was at the Limestone Coast in South
Australia. Various policies were evaluated out of it that acted upon the extraction
and distribution of the gas in regional areas. It led to the formation of a new industry
over there. Different plots and frameworks were constructed to structure the
development of the current situation.
2.1 Factors Affecting the Plant Closure
According to Beer et al. (2019), the various research works on the huge range of
plant closure furnished an affluent way to the debatable topics in scholarship and
academic researches. It eloquently discusses the new steps and ideas which help to
realize the method of a huge amount of dismissals which is having an interlinked
connection with the plant's closure system. It gave birth to immense impacts over
social, economic, geographical scales on the regional areas. It led to the postulation
of new detailed debatable exercise of the data collection methodology. Further, a
theoretical analysis has scrutinized experimental efforts that were embraced by the
local workers. The scenario was developed from a framework of certain decision-
making procedures. The most significant discussion lies in the fact that the whole
Stavros Kalogiannidis
997
process of examination and testing required the merge of different policies of
different communities that reached the ultimate depth of the analysis.
As per influenced by Markey et al. (2019) the ongoing process of the financial
condition of the rural areas pursues to be the keenest region that attracts the
specialists of geography and economy. This situation forced the development of
semi-urban regions that emerged out of the grave in the last few decades. Ryser et al.
(2019) also gave similar opinions describing the elements that cast their impact over
the plant closure system.
Plummer et al. (2018) stated that the primary point and the main focal situation of
the research was depended upon the changes and developments of the improving
conditions of the local areas. The main factors that affected it were by newly
developed policies and various acts that created the change in the marketing
scenarios via different pathways.
According to the information given by, Ryser et al. (2019) most of the analytical
works in this sector have the tendency to incline itself towards the quarters of the
resources. These resources specifically identify the mining areas that have the duty
for the extraction of energy which provides main advantages to the local community
regions. Another factor affecting this scenario is the limit up to which the host area
is spread for the extraction of the resources.
Measham et al. (2016) provided with the instances of the context of the current
circumstances. The most vital roles were played by the mobility of the financial
structure and the employment policies which carried the distribution of the income
and maintaining the equality of sex discrimination. It is also involved with the
account of demography, infrastructure quality, and services. The general discussion
indicates the prominence of holding more and more advantageous situations in the
host regions. This fact was broadly discussed during the inquiries of the
parliamentary session. The House of Representatives Standing Committee on
Industry, Innovation, Science, and Resources 2018 can be treated as a good instance
in this regard. It escorted a variant set of stakeholders that put forward numerous
perspectives of contrasting situations on proper mechanisms for retaining the
advantages properly. It includes the social responsibilities of the corporate sectors,
the supply chain industry of the local areas, and the need to hire laborers from local
areas.
Staden and McKenzie (2019) endorsed various schemes to share and distribute
advantages like the royalties given for areas by the state. The initiative focused on
the allocation of public taxes to the local communities. It may or may not give rise to
the summation and separation from the social responsibilities of the corporate
sectors. The impact of these features has a tendency to balance between different
contexts. The contexts depend primarily on regional economic situations.
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
998
2.2 Impact of Plant Closure on Regional Economy
The impact of plant closure mainly focused on settling communities like Australia. It
mainly depicts the idea of centrally shape the financial condition based on the
resource. The rural finances in the settling communities can grow to improve the
histories which are already featured by the systems of usage of the land,
infrastructures of institutions as well as the social and communal periods. These
communal periods became progressive and it re-enforces itself that brings about the
new outcome of remaining locked in and diminishing the flexibility to economic
disturbances.
As stated by Fielke and Wilson (2017) that they identified the part and duties of the
economic and political disturbances that resulted in the reconstruction as well as the
opening of the new companies and industries in these areas. The farming sectors did
not regulate anything in the early years, and this activated the line of connected
alterations which was developed as a matter of huge compression of the cost prices,
the arriving debts, the unity of the smaller assets, and also the diminishing factor of
the population in the regions. The impact on the economy of the regional economy
due to plant closure constructed some capable initiatives for improvements in the
future. Such initiatives generally gave birth to various stakeholders. They discovered
the upcoming elements and thus chose the most desirable and undesirable courses of
action.
According to Lendel et al. (2019) the basic affair was required to consider the
ultimate future plans of the industries among various other companies. A scenario to
plan a medium-term of around a decade was established to control the suspension of
the fracture of the hydraulic system, depending on the mobility. The writers made a
very informative background material that composed the economy along with a
chronicled and verified routine of the industries that had already emerged in the
areas. The previous arrangement of the framework has consisted of a different
variety of charts and tables which had very minutely accurate and precise
representation in order to use for connecting with the stakeholders. The inputs from
the experts of the communication system, the writers synchronized the raw materials
into a sheet of information that was printed and shared with the stakeholders. It acted
as an input of the next generation topic for the project works in the workshops.
2.3 Changes in Geographic Scenarios: The Role of Gas in the Limestone Coast
Region of South Australia
The geographic scenario of the areas had to face immense changes because of the
plant closure system. The economic geographers struggled a lot to develop the
answer to the queries and suspicions that emerged from the applicability of the
intervening policies in order to achieve the improvements in the regional areas. The
most debatable point lies about the matter that up to which limits the policies about
the improvement of the regions can be achieved with ease.
Stavros Kalogiannidis
999
Plummer et al. (2018) raised the idea of whether these interventions will anyhow
contribute to the assistance and help in the rural and semi-urban areas along with
wider support on the structural system which primarily abstains the financial
resilience in such areas. Most commonly the economists of these areas gave their
primary focus and thus emphasized whether to realize the limit of its changing
ability which is needed for the development of the new pathways indeed.
According to the reports of Ryser et al. (2019) the settler communities of the
Australian regions and the related geographers debated that the focus to the primary
structural needs can be needed prior to the upcoming economic plans to be implied
because of the investments which are missed via new policies which support
liberalism. It was further noticed that Australia was the producer of the highest
amount of coal and iron ore. For this reason, the country gained a reputation as the
quarry of the world.
Jaganathan (2018) mentioned in a journal that Australia even crossed Qatar as the
highest producer of natural gas in the world. Since the export of this natural gas from
Australia hovered the wholesale cost of the gas used for domestic purposes, its
production rate increased all over. Grafton et al. (2018) commented that the demand
for natural gas increased at such extinct that the industry fell in shortage of
production in the native markets.
As per the information, given by Long bottom (2019) the rise in sell prices of the
domestic gases caused immense tension on different parts of the economic system as
well as on the production sectors. Thus, it needs a worthy and affordable constant
supply of energy. Stanford (2016) explained the fact in simple words, saying that the
production businesses were shut down because of the entry of the great falls which
crossed the sector. As the results of that Kalogiannidis (2020) mentioned that
through proper business communication, business entities are able to enhance their
organizational management and share the knowledge .
2.4 The Role of Gas in the Limestone Coast Region of South Australia
The case of the Limestone Coast of South Australia deserves a notable mention in
history. It had brought about several changes in the concept and idea that was
previously thought and exercised about the system. It had several effects on the
economic condition of the people around, the workers' communities of the rural and
urban areas.
The Limestone Coast of South Australia case is undoubtedly a very important event
that can be always mentioned in this context in order to relate and narrate the facts
more vividly. This area is one of the highly known places for the production of
premium wine. Terra Rossa soil is present here that increased the richness of the
production level. It is the primary base of the Coonawarra terroir as well as the
stigmatized district of wine production. This area consists of the regional
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
1000
government localities of Grant, Mount Gambier, Wattle Range, Robe, Naracoorte
and Lucindale, Kingston, and Tatiara. Mount Gambier is the largest known town in
this region. It is well known for its light faded blue lake of groundwater that resulted
in itself to be turned as a tourist spot. Penola is another town of the region which is
surrounded by the vineyards of Coonawarra.
The economic status of this region is diversified. There are several agricultural
industries too, including a wide categorized range of farming industries, grazing
livestock, and also dairy farming. Pine plantations are formulated by the forestry
industry. Production of processed and packaged food plays a vital role here. The
figure given below is the map of the Limestone Coast of South Australia. All the
vital towns that resulted in the improvement of the economic system by its
production quality and quantity are pointed out in it.
There are several other production businesses, like, food and fiber. However, they
have not furnished much. For instance, Penola town had a chip factory. It was
operated by a Canadian company, McCain. Unfortunately, the factory was shut
down in December 2013. It happened because the input prices of the factory, raised
much high, and thus the company could not bear the expenses any longer. The basic
reason for such declinations resulted because of the withdrawal in the production
rate of the manufacturing industries of the entire region. This had happened in two
specific terms, namely, the share of gross regional product or GRP and in real terms.
On the other hand, the utility of the agricultural groups made immense growth. Even
the forestry departments came up with the highest donations in the whole area.
According to Poruschi et al. (2020); the sectors of health and hygiene and social care
aided the development of the economical condition simultaneously.
The Otway Basin is a well-known area of the South Eastern region in the Limestone
Coast of South Australia. It is so famous for its huge resource of natural gas
production. When followed according to the map given above, it is clearly visible
the exact location of the basin. The geographical climate and other natural facilities
featured the area and thus reached its extremism. There are several conventional
production industries of commercial gas. The first such industry was developed at
Kan took, which is located in the southern part of Penola.
After that Ladbroke Grove field was constructed there. So, it is very obvious that
this region gained much importance for its onshore gas industries. This causes a
huge improvement. It is known that Kimberly-Clark came up to enact a very
important position in order to develop and manufacture the South East Pipeline
System (SEPS). This system linked gas producers with other industries. The paper
mill of that is was thus served with energy supply much easily. There were other
industries like the timber milling company, pulp, and paper milling factory, and also
a commercial food preparation firm.
Stavros Kalogiannidis
1001
Image 1: Map of the Limestone Coast of South Australia
Source: Australia, 2020.
These set of enterprises were much helped and thus enhanced because of the sudden
upbringing of the natural gas industries in that area. Gradually, the supply for
domestic purposes in the local houses and markets became more and more favorable.
The local businesses flourished and thus improved the financial state of the working
communities. However, the Katnook Gas Plant was closed down in the last decade.
But several other gas plants sprang up in the meantime. The users did not have to
suffer for the closure. With the official closedown of the plant in 2013, the gas
pipeline was connected to the interstate infrastructure of gas supply (Poruschi et al.,
2020). The Limestone Coast Region did not lose its productivity level. So, no harm
came upon the economic condition of the workers' communities. The area was a
mixture of rural, urban and sub-urban patches. The agricultural firms of the rural
side thus kept its head up without affecting anyone. A similar situation had happened
in other areas too.
As the domestic gas price started increasing around 2012, the government of this
region started a new strategy, named, Plan for Accelerating Exploration (PACE) Gas
Program. This strategical program is known to provide the affordability of the
companies that develop and produce the gas. This program would encourage and
thus improve the quality of production by the companies by obtaining new methods
(Sandhu et al., 2018). This would also help the generators of electricity, industrial
users, and also the retailers in the province. The PACE gas program is granted for
three allocation assignments to carry out the discoveries and inventions on the
current plot at the Otway Basin.
As a matter of fact, these assignments gave their support in the new performances on
the commercial production of the gas. The new performance thus came to be
regarded as the 'conventional' gas. In the next years, Beach Energy started
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
1002
constructing a new gas producing plant, called, Katnook. This plant had the
capability to produce about 10TJ/day which can substitute the old plant facilities.
Along with the aim of increasing the domestic supplies in the native companies, the
features of the PACE also granted the requirement of the industries to propose the
initial right to refuse to the local users.
2.5 Gaps in the Literature
The analyst has studied various articles and journals by different scholars in order to
collect information about the plant closure in urban and rural communities. This
subject is a very common research project among different analysts. Numerous
projects are done over it. However, still there are some gaps in the literature on this
topic. This gap can be well noticed in the writings of previous scholars. Maximum
analysts and scholars primarily focused just on what caused the plant closure in these
areas. Apart from this, in order to discuss this matter, secondary data is required to
be collected and examined well. Suppose, it can be seen in the articles that only
information about the alteration in the economic condition is mentioned with various
graphs and tables. But the impacts of it are not clearly stated everywhere. So, this
research project is done to get information about both the primary and secondary
data analysis for enhancing authenticity.
2.6 Summary
After understanding the advantages of the local economic condition among the rural
and urban communities from the extraction and collection of resources, this region
turned out to be a primary area of attraction for both the geography and economy
experts. The possibilities for the usage of the resources of this region caused to be
valued a lot as it is aimed by numerous nations. One of the nations is Australia itself,
as it is a great source of income through diversified economic conditions among the
workers. The local scenario which is drawn by the Limestone Coast Region offered
a better instance about the enhancement of the gas extraction process. It is thus taken
into consideration that this industry would provide more and more employment
facilities for the growth of the financial condition thus reducing the crisis level of the
nation as a whole. The government should look into the matter to increase the supply
of gas to the local users by improving the infrastructure of the industries. In fact, the
provincial government authorities took initiatives to implement new policies to
control the industries which are opened shortly. Such growth can even cause
industries to face isolation. The local stakeholders should also take care of the matter
properly for developing the distribution of natural gas among the local rural and
urban working communities.
3. Material and Methods
The gas industry in Australia has been surrounded by various uncertainties in the
development of the region and its economy (Sandhu et al., 2018). The future aspects
Stavros Kalogiannidis
1003
should be considered as an alternative to the development of the basis of how the gas
industry affects other sectors in the region. The stakeholders advised the company to
analyze various scenarios that will be based on the qualitative and quantitative
analysis of the potential developments of the industry in the area.
3.1 Qualitative Analysis
The qualitative analysis of an industry in a region helps to determine the situation by
collecting the views from the people, their opinions, and what their demands are
(Cabral et al., 2020). This paper's qualitative analysis is based on the scenarios that
will help the development of the region after the closure of the plant in South
Australia.
Scenario planning:
Scenario planning is making presumptions about the future development of and how
it will affect the process along with time. Specifically, it can be explained as
identifying certain realities that can happen to the industry(Przeslawski, Miller, and
Meeuwig2016). It sounds like a simple process, but it requires considerable effort to
build a set of assumptions that will be worthy to fit the industry (Figure 1).
Figure 1. Scenario Planning
Source: Przeslawski, Miller, and Meeuwig, 2016.
Here the industry has closed, and now the assumptions should be made on the basis
of the available resources for development. According to the background, the
scenarios have been drafted and introduced to the stakeholders for their inputs. The
objectives of the planning are to analyze the possible outcomes for the gas industry
that can develop in the region.
The scenarios that are taking into consideration are the investments for the local gas
industry and economic diversity. The investments can be plotted over a graph with
different combinations as:
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
1004
• Increasing economic diversity vs good investment,
• Decreasing economic diversity vs good investment,
• Increasing economic diversity vs poor investments,
• Decreasing economic diversity vs poor investment.
The above four combinations will provide the required results and convey the path
that should be followed to attain good growth in the region.
Stakeholders workshop:
Stakeholders’ workshops are an excellent way to engage the stakeholders, the ones
who are directly affected by the implementation or have or direct interest in the
company.
In this research, the scenarios were listed and conveyed to the stakeholders for their
insights on the assumptions made. The workshop went for a long time and all the
points were briefly explained to them (McCabe, 2016). The primary motive of the
workshop was to help the stakeholders reach an agreement regarding the scenarios
designed and to find wants to avoid all the unwanted problems in the implementation
of the strategies. The outcomes of the workshops were as different stakeholders were
present differed. Everyone had their views and some of the suggestions are:
• Gas industry,
• Regional Development based locally,
• Manufacturing industry for packed food and milk products,
• Manufacturing industries for fibers and paper.
The representatives from forestry, agriculture did not attend the workshop. All the
participants reflected their views on the assumptions and discussed the potential
outcomes and ways to avoid any problems arising in the implementation of the
strategies.
3.2 Quantitative Analysis
Quantitative analysis is the process of collection and evaluation of measurable data
such as the profits, market shares in order to understand the performance of
industries (Wen et al., 2019). Quantitative analysis helps in making better decisions
for the financial performance of a company and allows it to manage the finances
based on the market demands.
Rise model:
RISE model is developed to guide the feedback process stands as Regional Industry
Structure and Development. In this paper, this model is developed to characterize the
assumed scenarios and explore the probable results. The RISE model here is a part
of the qualitative analysis that helps in determining the structure, dependencies, and
links between the industry and the locals of the region (Australia, 2020). The
Stavros Kalogiannidis
1005
approach has been useful in determining the economic effects in the region because
of different projects that have been carried out in the past decade. The analysis of the
input and output process of all the industries interconnect them with each other, as
though the supply chain management. Sometimes the consumers for one industry,
the output can be a part of another industry, the input, and vice versa. Thus, on the
basis, if the RISE model principle, the effects of the processes will be revealed with
time. The questions that are raised based on the scenarios are:
• how the economy will grow in the future, based on employment,
manufacturing process,
• What will be the role if the regional resources,
• Other factors that can affect economic growth like the population.
The information received from the above concerns will contribute to the
development of the regional economy as well as the country's economy.
Scenario parameterization:
Parameterization of a scenario helps to test any data and the expected values along
with verification of the data (Pakyuz-Charrier et al., 2018). In other words,
parameterization can be defined as creating multiple trials for a single scenario,
where each trial will consist of different assortments if the data parameters.
For the scenario, in this paper the diversity if the energy mix has a low limit and the
gas supply and the extraction process add value to it. The expansion of the gas
industry will result in the growth if the economy as there are numerous users. The
investment for the development, the local industries, and mining services will
provide be a significant element in the growth. Thus, the parameterization of the
assumed scenarios uses the maximum and the minimum limit for the gas industry to
provide the anticipated outcomes. The business for all scenarios will help all the
individual industries in the region to develop along with the gas industry and the
economy.
Communication with the stakeholders:
The whole process is developing the scenario, conveying the scenario to the
stakeholders, taking up the analysis results, and then the implementation of the
process should be informed to the stakeholders. The outcomes of the process, profits,
and growth should be communicated with the stakeholders. The purpose of the
presentation is to anticipate the outcomes that will help in developing the economy.
4. Results and Discussion
All the assumptions and the discussions on the scenarios with the stakeholders have
led to some outcomes that can be considered for later implementation. Considering
all the methods for development and economic growth in the area the probable
results can differ.
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
1006
Scenario analysis:
After conducting workshops with the stakeholders, the most considerable scenario
identified by the stakeholder is the second scenario. The scenario characterizes the
expansion of gas and other industries, which is desirable for the region as well as the
economy. Though the economic growth will be slow at the beginning in the later
phase, the economy will boost as desired. The scenario will also be helpful in
providing gas to the local market at cheaper rates (Sangha et al., 2019). Though
during voting for the scenarios the stakeholders were concerned whether the
investments in the gas industry will result in an expansion of the economy or not as
the industry is local, there will be transportation charges which might not help in the
reduction of the gas prices nationally. If the industry produces gas for local
industries at affordable rates. But considering the history, the local gas supplies
being unreliable, the stakeholders showed interest in the first scenario.
Along with the most desirable, the least desirable scenario is marked too. According
to the votes of the stakeholders, the fourth scenario was considered the least reliable
one. The stakeholders did not want the economy to shrink at the least. The economic
shrink would lead the region to be resilient and the economic growth will be
staggered for a long period (Sandhu et al., 2018). The locals will have to face
difficulties due to declining economic activity and this will lead to less investment in
gas.
Considering the third scenario, the stakeholders have mixed views, as this scenario
would introduce the use of current technology and innovation that would cost a price
for which all the users are not ready. For example, in the dairy industry, had is used
not just as an energy source but also as a part of the technology that helps to convert
milk into powdered form. However, to continue the use of gas, the industries need to
focus on the fact that they would be able to afford the gas prices with the addition of
delivery charges along with profits (Chapman McLellan and Tezuk, 2016). As if the
gas input in the industry is expensive then the industries would have to cut the cost
in labor which in return would not be of much help in the region.
Going with the most desirable scenario, the second one, there are two difficulties
that should be overcome, first being the availability of more reserves in the region
and the second being to make the gas more available for the locals (Leviäkangas,
Paik, and Moon, 2017). The stakeholders showed that government investments in
the projects will be helpful in obtaining the desired outcomes from the situation. On
the other hand, the industry can fulfill the additional gas supply by innovating an
alternative method for the distribution prices, like the use of trucks for delivering in
the local regions. Considering the large scale the gas industry can be effected on the
grounds if fossil fuels in general.
Industry trends:
The economy is also affected by the demands in the market and the requirements of
industries in order to fulfill the demands. Here, the value of the limestone has
Stavros Kalogiannidis
1007
increased from $2.7 billion in 2000 to $3.3 billion in 2017. According to Thomas-
Noone (2019), considering the chronology of increment, the regional value of the
place would rise to $3.7 by 2030. The agricultural unit in the region has consolidated
the economy by 37% in 2017. If agriculture, the forestry industry continues then it
would add around 4% to the economic growth by 2030 in the region. Along with
these, the healthcare industry has also shown growth and with the continued growth
the industry would account for 8% if the economic growth by 2030.
Input and output ratio:
There is a significant difference between the scenarios considered. The scenarios,
considered with growing economic growth show an increase in the gross rate in the
region, and the emolument has also increased (Lenzen et al. 2017). Considering the
other two scenarios where the economy is considered stagnant or decreasing, the
gross development is very low for the region through the gross rate shows increment
by 2%.
5. Discussion
The results so obtained by considering all the scenarios are, the increase in economic
diversity directs toward the growth of the economy and increased employment in the
region, along with increased investment in the gas industry. On the other hand, the
decrease in economic diversity decreases investments along with higher
unemployment and slow economic growth in the region.
The analysis of the methods has shown that the stakeholders and all the participants
at the workshop were keen on the gas industry and investing in the industry seems to
be beneficial for the economy and not only an expense (McCabe, 2016). The
analyses also show that investment and technological advances along with
innovations will help the gas industry to flourish and gain the market. With the
increasing demand for natural gas in the global market, the domestic had in Australia
had to bear the high prices of gas. Therefore, the investments in the gas industry will
be a means to provide gas to the locals, though, in the beginning, there will be
delivery charges applied. The growth of the gas industry and its supply chain
management will help grow the regional economy.
As the gas industry is re-established, the Lime-Stone coats will get a new possibility
to be recognized as a resource extraction region in Australia. The possibilities for a
new portrayal are because of the involvement of the local infrastructure in the 1990s
previous to the gas plant. With all the new possibilities and the scenario
assumptions, the gas plant will expand to the gill potential. The state government has
also been encouraging the gas industry to re-establish and local distribution of the
gas.
According to research, the new regions for extraction should consider all the factors
that will affect the extraction along with the impacts of the process on the region and
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
1008
its surrounding. However, the scenario assumptions and the discussion over the
outcomes will help the stakeholders to understand how they will be affected by the
whole extraction process and identify the activities beforehand so as to get the best
of the situation.
Acknowledging all the outcomes of the try situation, the narrative received is mostly
positive and it is important to understand that regional development is a complex
process and there are many elements to affect it. Although the gas plant is preferred,
the Limestone Coast is recognized to be significant in overcoming the challenges
and help in developing the infrastructure to avoid lock-in of the gas industry. The
economy of the region depends on the global economy and demands. The milk
factory in the region uses gas and exports the packed products to the global market
too. With pandemics, it is impossible to predict what will be the future of the
projector gas industry in the region.
The economic countries are now looking forward to changing and most of the
nations are not more focused on the production industry and it has become one of the
important sectors. Manufacturing is an important part of the production process
along with innovations and technical advantages. For the production process energy
is essential. As for the gas industry, the demand for supply is already in the market,
and to fulfill all the requirements the gas plant will have to work on supply
management. Thus, with sufficient demand in the market and the right involvement
of technology the gas plant will grow along with increasing the economy of the
region.
References:
Australia, E.S. 2020. The value of local gas resources.
Beer, A. 2018. The closure of the Australian car manufacturing industry: redundancy, policy,
and community impacts. Australian geographer, 49(3), 419-438.
Beer, A., Weller, S., Barnes, T., Onur, I., Ratcliffe, J., Bailey, D., Sotarauta, M. 2019. The
urban and regional impacts of plant closures: new methods and
perspectives. Regional Studies, Regional Science, 6(1), 380-394.
Cabral, B.P., de Sousa, F.L., Canêdo-Pinheiro, M. 2020. Assessing the impacts of innovation
barriers: a qualitative analysis of Brazil's natural resources industry. Resources
Policy, 68, 101736.
Chapman, A.J., McLellan, B., Tezuka, T. 2016. Proposing an evaluation framework for
energy policy making incorporating equity: applications in Australia. Energy
Research & Social Science, 21, 54-69.
Fielke, S.J., Wilson, G.A. 2017. Multifunctional intervention and market rationality in
agricultural governance: a comparative study of England and South Australia.
GeoJournal 82 (5), 1067-1083. https://doi.org/10.1007/s10708-016-9729-8.
Grafton, R.Q., Shi, X., Cronshaw, I. 2018. “Making cents” of the Eastern Australian gas
market. Econ. Pap., J. Appl. Econ. Policy, 37(1), 42-54.
https://doi.org/10.1111/1759-3441.12194.
Jaganathan, J. 2018. Australia grabs the world's biggest LNG exporter crown from Qatar
Stavros Kalogiannidis
1009
innov commodities, December 10, 2018. https://www.reuters.com/article/us-
australiaqatarlng/australia-grabs-worlds-biggest-lng-exporter-crown-from-qatar-in-
novidUSKBN1O907N.
Kalogiannidis, S. 2020. Impact of Effective Business Communication on Employee
Performance. European Journal of Business and Management Research, 5(6).
https://doi.org/10.24018/ejbmr.2020.5.6.631.
Lendel, I., Piazza, M., Ellerbrock, M. 2019. Lordstown GM Plant Closure Economic
Impact Study.
Lenzen, M., Geschke, A., Malik, A., Fry, J., Lane, J., Wiedmann, T., ... Cadogan-Cowper, A.
2017. New multi-regional input–output databases for Australia–enabling
timely and flexible regional analysis. Economic Systems Research, 29(2), 275-
295.
Leviäkangas, P., Paik, S.M., Moon, S. 2017. Keeping up with the pace of digitization: The
case of the Australian construction industry. Technology in Society, 50, 33-43.
Longbottom, J. 2019. Australia is the biggest exporter of liquid natural gas so why is Victoria
facing a future shortage? ABC news https://www.abc.net.au/news/2019-02-24/why-
victoria-is-facing-gas-shortage/10798554.
Marcos-Martinez, R., Measham, T.G., Fleming-Muñoz, D.A. 2019. Economic impacts of
early unconventional gas mining: Lessons from the coal seam gas industry in New
South Wales, Australia. Energy Policy, 125, 338-346.
McCabe, B. 2016. Country report Australia. In IEA Bioenergy: Task (Vol. 37).
Pakyuz-Charrier, E., Lindsay, M., Ogarko, V., Giraud, J.,Jessell, M. 2018. Monte Carlo
simulation for uncertainty estimation on structural data in implicit 3-D geological
modeling, a guide for disturbance distribution selection and parameterization. Solid
Earth, 9(2), 385.
Plummer, P., Tonts, M., Argent, N. 2018. Sustainable rural economies, evolutionary
dynamics and regional policy. Appl. Geogr., 90, 308320.
https://doi.org/10.1016/j.apgeog.2017.01.005.
Przeslawski, R., Miller, K., Meeuwig, J. 2016. Stakeholder Workshop Report.
Ryser, L., Halseth, G., Markey, S., Gunton, C., Argent, N. 2019. Path dependency or
investing in place: understanding the changing conditions for rural resource regions.
Extr. Ind. Soc., 6(1), 29-40. https://doi.org/10.1016/j.exis.2018.10.009.
Sandhu, H., Clarke, B., Baring, R., Anderson, S., Fisk, C., Dittmann, S., ... Costanza, R.
2018. Scenario planning including ecosystem services for a coastal region in South
Australia. Ecosystem Services, 31, 194-207.
Sangha, K.K., Gerritsen, R., Russell-Smith, J. 2019. Repurposing government expenditure
for enhancing Indigenous well-being in Australia: A scenario analysis for a new
paradigm. Economic Analysis and Policy, 63, 75-91.
Stanford, J. 2016. Manufacturing (Still) matters: why the decline of Australian
manufacturing is not inevitable, and what government can do about it; Centre for
future work at the Australia institute, Canberra, 15pp.
Thomas-Noone, B. 2019. Ebbing Opportunity: Australia and the US National Technology
and Industrial Base. The United States Studies Centre, 25.
Van Staden, J.W., Haslam McKenzie, F. 2019. Western Australia’s royalties for regions
program: a policy response to growth, regional neglect, and perceived
disempowerment. Geogr. Res., 57(4), 384-398. https://doi.org/10.1111/1745-
5871.12349.
Wen, Z., Wang, Y., Li, H., Tao, Y., De Clercq, D. 2019. Quantitative analysis of the precise
energy conservation and emission reduction path in China's iron and steel
Impact of Plant Closures on Urban and Regional Communities: A Case Study of South
Australian Gas Industry and its Workers
1010
industry. Journal of environmental management, 246, 717-729.
Witt, K., Kelemen, S., Schultz, H., Vivoda, V. 2018. Industry and government responses to
unconventional gas development in Australia. The Extractive Industries and
Society, 5(4), 422-426.
