VALUING THE ENVIRONMENTAL COSTS OF VEGETATION REMOVAL AND ECOSYSTEM DISTURBANCE ASSOCIATED WITH PETROLEUM OPERATIONS, COOPER BASIN, SOUTH AUSTRALIA

Abstract

This paper describes the results of a small-scale study that looked at an alternative way of managing the environmental impacts of petroleum developments. The study was based on a contention that an application of the contingent valuation method (CVM) in the context of petroleum developments might assist the petroleum industry in achieving the goals of ecologically sustainable development (ESD), while contributing to the change of the community’s attitude towards the industry. CVM, based on direct community involvement in determining the environmental costs of the native vegetation removal associated with the petroleum developments in the South Australian Cooper Basin, was applied to the selected ‘groups of interest’. The collected data were analysed and discussed in light of the feasibility of a full-scale CVM study, and its potential practical value both for the petroleum companies operating in the Cooper Basin and the regulatory state government authorities. The results of this study showed that the application of CVM in the context of the petroleum industry might yield significant benefits for the industry in terms of ESD. In the long term, it may assist in changing the community’s perception of the petroleum industry. This approach does not intend to contradict, but to complement, the current environmental management practices of the petroleum developers.