Commentary
New South Wales (NSW) has introduced a reservation policy for coal. A certain portion of coal produced in the state will be required by law to be sold within the state.
The policy will likely come into effect on the 1st of April, but that doesn’t mean it’s a joke.
This is one more infuriating move from a supposedly centre-right state government that doesn’t even pretend to understand the economic principles that should define it.
Yet it has been said that choice in government is a fiction of politics.
In the case of the NSW government, this policy is not a pivot point. It has been expected—in fact, economically inevitable—since the federal government announced price caps on the industry late last year….