Economics & Policy
The foundations of sustainability involve understanding and managing economic, social and environmental risks and opportunities.
Identifying and managing economic risks and opportunities across all key stakeholder groups (including but not limited to shareholders or investors) delivers sustainable growth and performance as well as a competitive advantage.
Economics provides frameworks to inform decisions and choices, in particular by providing methods for:
- Weighing up costs and benefits of competing alternatives over the long term
- Eliciting trade-offs
- Deciding on allocation of resources or appropriate cost sharing.
Net Balance's Economics and Policy team provides our clients with analyses and tools steeped in sound and holistic economic approaches to support their decision making. View examples of some of the work we have done for our clients.
We offer services across the following areas:
Economic analysis and advice
Companies and governments need clear and robust analyses to inform their decisions. Our team of economists use both classic and innovative economic and financial methodologies to produce high quality economic analyses and advice.
Our economists and financial analysts have worked with both government and corporates and are able to adapt their approach to the unique requirements of our clients. Our objective is to always produce value-adding, evidenced based and useful analyses in the most transparent way.
- Market analysis, analysing the state, trends and drivers of a specific market segment
- Supply / demand analyses, including demand elasticity
- Advice on how to overcome market barriers and how to develop a specific sustainability-oriented market segment
- Tariff analyses (energy, water)
- Non-market economic valuation studies.
Informing decision making
Decisions can be hard to make when the implications of making the wrong decision can be far reaching.
Economic techniques inform robust and rational decision making. Financial modelling assists with investment decisions, when return on investment is the sole or primary consideration.
- Development of decision making frameworks
- Development of business cases and business case tools, to help our clients articulate the merits of an investment
- Cost benefit analysis, typically used to evaluate objectively the merit of a range of possible solutions to a specific issue.
Our team works with clients to develop robust frameworks or detailed modelling of decision criteria, economic values or financial budgets. Products using these techniques include:
Our mix of skills and our ability to work in multi-disciplinary teams enables us to deliver policy analyses across our specific fields of expertise; environment, social impact programs and clean technology investment.
Our consultants deliver policy analyses combining sound economic frameworks and knowledge of the relevant sector or industry, building on our close links with the corporate sector.
- Economic analyses informing policy development (Cost benefit analysis)
- Articulation of the case for government intervention, including through program extension or regulation
- Analyses of market-based instruments and incentives.
We have also developed specific expertise in policy and program evaluation that are:
- Independent and objective
- Informed by an in-depth knowledge of the sector or topic matter
- Constructive and focussed on delivering recommendations that can be easily implemented.
Why Net Balance
Our philosophy is to use economic and finance techniques as a means to support sound and sustainable decision making. We adopt collaborative approaches, both internally with our technical specialists and externally with our partners and clients to deliver the best outcomes for your organisation.
We understand that the future is uncertain and endeavor to apply a set of techniques that recognise uncertainty and provide rich information for decision makers.
MACC: Marginal Abatement Cost Curves, a way to visually compare the business cases for a range of energy and emissions and reduction opportunities.
EBaR®: Energy Budgets at Risk, a risk-based approach for managing the future uncertainty and impact of rising commodity prices.
Monte-Carlo: A method that uses repeated random sampling to model the effect of uncertainty on your operations.
Non-market valuation: A range of economic techniques aiming to put a dollar value on intangibles or services not traded in the market.