Unit 1
Unit 2
Environmental Markets
The Impact of Pressure Groups
A pressure group is an organised collection of people who work together to try and achieve a pre-determined outcome. Pressure groups try to get the government to make decisions that will help them to achieve their goals. Political pressure groups are very strong all over the world, and Australia is no exception.
You can learn a lot about the activities of pressure groups by visiting this site. The acronym “Edie” stands for the “Environmental Data Interactive Exchange”, and although it is based in Europe you will be able to find information about activities all over the world.
In Victoria there are many pressure groups that focus on environmental issues. In 1960 a group of people gathered together to try and prevent the Little Desert from being transformed into an agricultural area. Soon after, the Little Desert National Park was formed, and it still exists today. The group continues to exist as well, although they have taken on a far more formal organisational structure. Today they are known as Environment Victoria, and they have played a significant role in protecting many aspects of our environment, including our access to water resources.
For example, in 2006 the drought was proving to be extremely difficult to manage in Victoria. After an extended period with lower than average rainfall, it is natural that the government began to consider alternatives that could increase our access to water in the future. One option that was considered at the time was the possibility of building a new dam. At first this might seem like a logical suggestion; if we can store more water when it rains, then we will have access to more water when we need it. But creating a dam and the infrastructure that is necessary to operate it causes significant environmental damage. Environment Victoria was able to convince the Victorian government that the benefits of a new dam could be matched by other water saving initiatives. On this basis, by the end of 2006 the Victorian government had promised that it would not build any new dams in this state.
In the same year, Environment Victoria was able to convince the state government to return 17 billion litres of water to the Yarra River. People who live in Melbourne are often misled about the health of the Yarra; it looks relatively healthy as it passes through the city, and so you could be forgiven for wondering what all of the fuss was about. The truth is that the water level near the mouth of the river always looks good because it is “topped up” by seawater. Further upstream there are many areas of the river that desperately need more water. However, this also demonstrates one of the weaknesses of the activities of pressure groups. While they can influence decisions, they are generally unable to act upon them. Although the promise was secured, by 2010 the Yarra River had still not received all of the extra water that had been promised in 2006.
On a more positive note, in 2009 Environment Victoria was able to influence the government to change the way in which water trading is managed in irrigation areas. Under the changes that have been made, it is possible to purchase water for environmental flows. The federal government has committed to purchasing a significant quantity of water between now and 2014, and using it to improve the health of the rivers in northern Victoria. If this commitment is met, it will mean better access to water for farmers who operate in this region as well.
It is important for economists to take the time to consider the actions of pressure groups. At its core, economics is the study of the way in which we make choices, and pressure groups play an important role in this regard.
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