Economics of fuel supply disruptions and mitigations

Socio-economic analysis of fuel disruption scenarios in New Zealand.
 
This project investigated how organisations and communities respond to fuel disruptions, modelling the economic impact of various fuel disruption scenarios and mitigation options to better understand the impact of disruption and the potential value of mitigation actions for New Zealand.

Project overview

Fuel is a key economic enabler. Disruptions to fuel availability and/or price changes have considerable impacts on both regional and national economies. Understanding the potential impacts of any disruption can help decision-makers to determine the best mitigation and management strategies.

The Ministry of Business Innovation and Employment (MBIE) engaged Market Economics Ltd (M.E) and Resilient Organisations to evaluate the economic consequences of fuel outage scenarios, with and without mitigation options to better understand the impact of disruption and potential value of mitigation actions for New Zealand. The economic evaluation is undertaken using MERIT’s (Measuring the Economics of Resilient Infrastructure Tool) Dynamic Economic Model. MERIT is applied to five disruption scenarios including international fuel supply disruption, refinery disruption scenarios and refinery to Auckland pipeline disruptions.

The project findings contributed to the Board of Inquiry into the 2017 Auckland Fuel Supply Disruption.

Key contact

Charlotte Brown

Joint Managing Director
Resilient Organisations Ltd
e : [email protected]

Project team

Charlotte Brown

Resilient Organisations

Nicola McDonald

Market Economics

 

Our funders

This project was commissioned by the Ministry of Business, Innovation and Employment,

Project report

The full project report is available from the MBIE website.

Download report

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