During a global moment where oil prices are spiking tremendously, a movement to increase gas taxes is brewing in Australia. And if it does succeed, it could provide a template that could help other countries not only fund their own prosperity, but reduce the tremendous damage done by fossil fuels.
At issue are Australia’s exports of petroleum gas, largely in the form of liquified methane.
While Australia is a generally wealthy nation, its economy is less complex than many other advanced nations, and relies heavily on extraction of natural resources. Australia’s export value is concentrated in raw material exports, rather than complex manufacturing.
Much of Australia’s wealth comes from mining, but as you can see on the charts below, petroleum products make up a big chunk as well. Australia is in fact the third-largest global exporter of petroleum gas behind US and Norway, and its exports mainly go to Japan, China, and Southeast Asian countries.
USA,Norway, and Australia’s exports. Blue/pink/purple colors are more complex products like machines, medicine and instruments, while red/brown colors are raw materials. Data from the Observatory of Economic Complexity.
