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FuelWatch: evidence-based-policy or policy-based-evidence?(Report)

Economic Papers - Economic Society of Australia

| December 01, 2008 | Harding, Don | COPYRIGHT 2008 Economic Society of Australia. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

1 Introduction

Stilgoe, Irwin and Jones (2006) provide a detailed discussion of evidence based policy in the United Kingdom and the United States that sets the context for this paper. They document cases where expert evidence was often reshaped and repackaged by governments so that it supported existing policy rather than informing policy decisions.

The decision to introduce a national FuelWatch scheme raises a number of issues about the interplay between evidence and policy in Australia; see Harding (2008a, 2008b, 2008c).

In this paper I focus on just two questions. First, was the policy shaped by the econometric evidence or was the Government's presentation of the evidence shaped by the pre-determined policy? Second, is the econometric evidence sufficiently robust as to support the FuelWatch policy?

2 Background to FuelWatch and the 2007 ACCC Report on Petrol Pricing

The national FuelWatch scheme which was announced on 15 April and is to start on 15 December 2008 is based on the Western Australian Government's scheme of the same name that was introduced on 2 January 2001.

2.1 The 2007 ACCC Report on Petrol Pricing

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Source: HighBeam Research, FuelWatch: evidence-based-policy or policy-based-evidence?(Report)

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