Problem
Prove the Stolper Samuelson theorem and use it to predict the effects on income distribution in Australia of the transition to renewable energy. You should imagine Australia is a specific factor economy with 'energy mining' in Qld and WA on the one hand, called M, and, 'everything else' combined (manufacturing, agriculture and services) in the other states, called E for Everything. For arguments sake you can assume non-energy exports are stable and are like an annuity for the Australian economy. You can assume mobile labour in between the two sectors, no unemployment, and that Australia is a price taker for its energy exports.