Sustainability Evolution In Property Market

Job Opportunities and Impact on Employment

Discuss about the Sustainability Evolution in Property Market.

The proponents of the proposed project believe that the project would create job opportunities to the locals. According to these narratives, over 10,797 jobs would be available courtesy of this project. The proponents of this project have a strong belief that this would be a long time solution to the challenge of unemployment which has been a thorn in the flesh in the contemporary society. Strategically this is one of the positive impacts that are likely to be more popular with the locals around the area which the project is set to occupy and thus acquire their full support and endorsement (Ray, 2016). However, in the same argument, the total number of jobs created will be directly proportional to both the scope and size of the project. From my perceptive though, the Adani Carmichael mine projects in Australia would also affect other employment opportunities from related companies who may be forced to downsize due to increased competition or reduced number of clients.

Dr. Fahrer further argues that the proposed project will not have any impact on the e environmental factors. In fact, he particularly quantifies the net effect as zero. However, it is argued that such a project cannot have zero impact on the environmental factor i.e (EEOC, 2017). Water, air, and soil. Such a creation is thus read bay most of the critics as not only mischievous but also dishonest (Kahkonen, 2011).

On the other hand, Dr. Fahrer in his model argues that the introduction of the proposed project will have an effect on the overall World coal output. According to his argument presented by Dr. Fahrer, there is, however, no quantification of the extent to which such output shall potential falls (Yin, 2003). The only argument presented in the model is based on the fall of an overall world output if the new proposed project sees the light of the day in Australia. This argument has further been used by his critics to squash the argument presented in this model.

Dr. Fahrer uses an economic model based on a simple mathematical approach to have deep analysis on the economic effects. In this methodology deployed, Dr. Fahrer does not take into account the contribution of external factors e.g.  Environmental factors and other related human resource factors. This methodology is viewed to be in isolation and thus not only unrealistic but also unreasonable (Schreier, 2012). The approach fails to address fundamental issues that are increasingly necessary for the assessment of the project viability (Warren-Myers, 2016). Significantly, the model does not achieve much in addressing the actual qualities raised in various sections in the methodology hence making the presentation appear vague (Todd, 2015). It is worth noting that this methodology approach is not appropriate in achieving assessment goals since it leaves a number of loose ends and fails generally to exhaustively address the key external factors that have great impacts on the economic discourse of a project.

Environmental Impact and Critics

The assumptions made by Dr. Fahrer tell much about the choice of his model. To begin with, Dr. Fahrer assumes that once the Carmichael project is officially opened and becomes operational in Australia, there would a generally reduced World coal output. He further states in his assumption that that most of the companies dealing in coal will either be forced to downsize or close down (Affidavit of Jerome Gregory Fahrer, 2015). Dr. Fahrer, however, fails to give out an elaborate competitive ability of Adani Carmichael project that will outdo the other established companies of forcing them to close down. Further, this assumption does not point out on this single company will serve the entire world population in case the rest of the companies closed down.

Moreover, the assumption by Dr. Fahrer that the general cost of coal will fall after the inception the Adani Carmichael project is challengeable. This assumption does not take into account the significance the proposed Adani Carmichael project against world population. In reality, the output of the project would be too insignificant to affect the overall prices of coal in the world (Wolbers, 2016). This assumption is so inappropriate that it did not include the statics of general coal consumption in the world against the proposed output from Adani Carmichael project.

In the field of creation of job opportunities, the model presents that a whopping 10,979 would be created through this proposed project. This is seemingly unachievable since such a number a number of opportunities depend on other external factors which are still empty assumptions (Kahkonen, 2011). He also predicts impacts on other industries e.g. agriculture and food employment is predicted to decline by around 200 jobs (Affidavit of Jerome Gregory Fahrer, 2015). In this case, Fahrer present an assumption of the creation of new job opportunities at the expense of other already available opportunities which makes the assumption ridiculous and inappropriate. Further, Fahrer in his assumption fails to give an account of why the assumption foresees a decline of opportunities in other sectors.

The quantifications made by Fahrer in this model are comparatively insensitive and have generally failed to give the actual and realistic figures. Fahrer puts the quantification of the environmental effects of the project at zero (Individual Expert Report for Computable General Equilibrium Modelling and Cost Benefit Analysis, 2015).  This kind of quantification is biased and misleading. Arguably this is one of the shortcomings of a model that disregards the contribution of external factors in the general economic output of the project (Affidavit of Jerome Gregory Fahrer, 2015). It is worth noting that the numbe10, 979 that is attributed to the new job opportunities by Fahrer in his model is not anchored in any scope and data and  is insensitive of several factors that make up such analysis.

Effect on World Coal Output

Even though Fahrer mentions the effect of the proposed Adani Carmichael project on other related companies in the world citing that this company in Australia could force other companies to close down he fails to give out an account of the input this company would bring to the world to replace the rest of the established companies (IMF, 2014). Fahrer, who is the proponent of this project, is being so insensitive to the number of people being served with the current coal energy against the output from the proposed Adani project which critics argue could just be too insignificant to achieve any viable change.

Cost and Benefit analysis is a very important process in assessing and finally determining the general viability of a given project n relation to the economic social and political pillars. If I am given an opportunity to re-conduct a socio-economic Cost Benefit Analysis on the proposed Adani project then I would above all ensure that my analysis is based on achievable parameters and address other important external factors that would have an impact in the proposed project (Ellet, 2012). I would be specific on every element used in the analysis to ensure that I don’t base the overall analysis on hasty generalization. In this regard, I am convinced that the CBA shall achieve its objectives and provide a realistic and achievable blueprint for the inception of the proposed project.

To begin with, I will quantify different parameters in my analysis e.g. impacts and actual benefits accruing from the project. If for instance, the analysis is talking about the creation of new job opportunities from the potential project, I would go further and give the details of the types of jobs to be created (Cline, 2016). Are the jobs formal or informal? How many opportunities are likely to arise from each department? I would go further n analyzing the correlation between these jobs and other pre-existing opportunities in other departments (Lewis, 2015). I would have specific analysis on whether the creation of job opportunities in this proposed project would potentially affect other  opportunities in other sectors by giving specific sectors that are likely to be affected and the number of employees who are likely to sent packing if the Adani proposed project sees the light of the day.

To fully evaluate the viability of the project pays more attention to the specific benefits from the proposed project against the challenges anticipated. If the project will raise revenue for the Australian government, I would look at the projected amount of revenue that can come out of the project annually and the general impact of the project on the environmental factors e.g. pollution. To what extent can the project release potential pollutants to the environment and which quotas are likely to be affected. If that is the case, is the proposed project worth it? That notwithstanding I would have a critical analysis of the total amount of money required to set up this project against its returns. F the project does not seem to give out the returns which are equivalent to capital invested in starting it up, then that raises a key viability question. This will be a very important discourse in analyzing the viability of the project to both internal and external socio-economic factors.  

Cost and Benefit Analysis

Moreover, I would use an economic model that simple and realistic. My model will take cognizance of other external factors that contribute to the social and economic status of the project. This model will not be blind on the analysis of the location of the project in terms of the occupants and how the prevailing demographic factors e.g. age, sex, and the educational backgrounds are likely to play out in the proposed project. Notably, the assumptions in my model would be based on established case studies and in-depth analysis. If one of my assumptions is that the inception of this project reduces the general world output of coal then I must go deep into giving out the existing number of coal projects and their output as at current so as to evaluate if my assumption is realistic. I would evaluate the number that can be served by the proposed project to address the assumptions on the competitive ability of the project and whether it may play a significant role in closing down of other existing coal projects or results into downsizing in some related companies.

I believe that all these suggestions are viable and justified since they strive to achieve the set objectives in a simpler and more realistic approach. As a matter of fact, an analysis that gives out an appropriate and factual quantification can stand the test of time (Klenke, 2016). Above all social and economic viability of a particular project can only be evaluated based on realistic quantifications and assumptions as opposed to digressions, hearsays and hasty generalizations that may be misleading and unrealistic.

Even though it is a common practice for the mother governments to give out concessional loans to projects that may be deemed viable, the social impacts of the concessional loan of $1 billion by the Australia Government for Adani to build a rail line between its proposed Carmichael coal mine and the Abbot Point shipping terminal cannot be wished away.

To begin with, the proposed concessional loan is likely to increase the cost of living and operations for most individuals and organizations in Australia. This is because the government is likely to turn back to the people and organization to meet the cost of this loan through taxes. By the end of the day, the tax pay citizens of Australia and organizations are going to be the first people to feel the pinch of this concessional loan as the will be forced to dig deeper into their pockets (Naude’, 2013). Secondly, this concessional loan may contribute largely to an economic crisis that shall directly impact on members of the community and organizations if the project fails the viability test and fails to pay back the loan.

In my opinion, I don’t think if the proposed loan rate is fare to some groups of consumers in the Australian community who struggle day and night to make ends meet. This concessional loan shall only add a burden on their shoulder and might not achieve much in benefiting the community in the long run. This is a pointer that the implementation of this project is due to take off at the expense of the peoples’ livelihood and welfare.

Personally, I would not support the issuance of the proposed concessional loan of $1 billion by the Australia Government since it could plunge the Australian government into an economic crisis if the project fails to pay back. Moreover, the loan shall be a burden to the common taxpayers despite all the risks of not passing the viability tests.

References

Affidavit of Jerome Gregory Fahrer, 33046669v3 (Land Court of Queensland January 30, 2015).

Cline, W. (2016). Managing the Euro Area Debt Crisis. Columbia University Press.

EEOC. (2017, June 21). Laws, Regulations, and Guidance. Retrieved August 19, 2017, from Equal Employment Opportunity Commission: https://www.eeoc.gov

Ellet, W. (2012). The Case Study Handbook: How to Read, Discuss, and Write Persuasively about Case Studies. Boston: Harvard Business School Press.

IMF. (2014). IMF Response to the Financial and Economic Crisis. Washington, D.C.: International Monetary Fund.

Individual Expert Report for Computable General Equilibrium Modelling and Cost-Benefit Analysis (The Land Court of Queensland March 16, 2015).

Kahkonen, A.-K. (2011). Conducting a case study in supply management. OSCM Journal , 31-41.

Klenke, K. (2016). Qualitative research in the study of leadership. Emerald Group Publishing Limited.

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Naude’, W. (2013). Entrepreneurship and economic development: Theory of evidence and policy. Browser Download This Paper , 15-43.

Ray, J. (2016). Abercrombie & Fitch: A Strategic Position.

Schreier, M. (2012). Qualitative Content Analysis in Practice. Sage , 227-245.

Todd, P. (2015). Introduction: Australian industrial relations in 2014. Journal of Industrial Relations , 325-332.

Warren-Myers, G. (2016). Sustainability evolution in the Australian property market: Examining valuers comprehension, knowledge and value. Journal of property investment and finance , 578-601.

Wolbers, M. (2016). A generation list? Prolonged effects of labour market entry in times of high unemployment in Netherlands. Research in social stratification mobility , 51-59.

Yin, R. K. (2003). Case Study Research: Design and Methods. Sage .