ACIL's new capability has been made possible through an arrangement with the Economic Research Centre (ERC) of the University of Western Australia to use the WA Economic Model (WAM) to undertake economic analysis. ACIL has appointed Peter Johnson, formerly of the ERC, as a consultant to lead its modelling and impact analysis work.

ACIL utilises both computable general equilibrium modelling using WAM, as well as input-output analysis, which can provide a more cost-effective analytical solution for some applications. Public and private sector clients use these techniques to identify and analyse the impacts of new development proposals, changes in government policies and regulation, and new tax proposals.

Peter Johnson has more than 12 years' experience in the resources sector; first as a chemical engineer working for such companies as Alcoa, BHP and Esso, and secondly as an economist, evaluating the impact of various resources projects - and the resources industry as a whole - on the economy of Western Australia.

"ACIL's regional modelling services provides a tool for assessing the benefits and costs of new industries or changes in government policy on regional and State economies," said David Trebeck. "Peter Johnson's insights into both the engineering and economic characteristics of the resources sector enhances the service ACIL can provide to industry and government clients."

Peter specialises in regional economic modelling, and in association with the ERC, has recently completed a new input-output table for the Kimberley region. Peter's economic analysis work in the minerals industry is not limited to economic modelling. He was involved in the 1998 WA gold industry study and an earlier study of industrial minerals in Western Australia. Peter has also undertaken many consulting assignments for companies in other sectors.

Peter's recent work includes short studies into the economic contributions of Cockburn Cement, the WA agricultural industry and several international sporting events held in Western Australia. An upcoming ACIL study on a major new gas development will integrate WA and regional modelling with the work of a Canberra-based national modeller.

WAM is a large scale computable general equilibrium model of the Western Australian economy and was developed by the ERC in response to the need for an economic model that captures the specific structure of the WA economy and the unique nature of the interdependencies among WA industries. Peter Johnson has developed a two-region variant (WAT - P) that models the Pilbara economy specifically, as well as the State's.