Please use this identifier to cite or link to this item:
https://hdl.handle.net/1959.11/14049
Title: | An analysis of Australia's large scale renewable energy target: Restoring market confidence | Contributor(s): | Nelson, Timothy (author); Nelson, James (author); Ariyaratnam, Jude (author); Camroux, Simon (author) | Publication Date: | 2013 | Open Access: | Yes | DOI: | 10.1016/j.enpol.2013.07.096 | Handle Link: | https://hdl.handle.net/1959.11/14049 | Open Access Link: | http://ec.europa.eu/clima/consultations/articles/0017/unregistered/agl_5_en.pdf | Abstract: | In 2001, Australia introduced legislation requiring investment in new renewable electricity generating capacity. The legislation was significantly expanded in 2009 to give effect to a 20% Renewable Energy Target (RET). Importantly, the policy was introduced with bipartisan support and is consistent with global policy trends. In this article, we examine the history of the policy and establish that the 'stop/start' nature of renewable policy development has resulted in investors withholding new capital until greater certainty is provided. We utilise the methodology from Simshauser and Nelson (2012) to examine whether capital market efficiency losses would occur under certain policy scenarios. The results show that electricity costs would increase by between $51 million and $119 million if the large-scale RET is abandoned even after accounting for avoided renewable costs. Our conclusions are clear: we find that policymakers should be guided by a high level public policy principle in relation to large-scale renewable energy policy: constant review is not reform. | Publication Type: | Journal Article | Grant Details: | ARC/120200192 | Source of Publication: | Energy Policy, v.62, p. 386-400 | Publisher: | Elsevier Ltd | Place of Publication: | United Kingdom | ISSN: | 1873-6777 0301-4215 |
Fields of Research (FoR) 2008: | 140209 Industry Economics and Industrial Organisation 140205 Environment and Resource Economics 140214 Public Economics- Publically Provided Goods |
Fields of Research (FoR) 2020: | 380109 Industry economics and industrial organisation 380105 Environment and resource economics 380114 Public economics - publicly provided goods |
Socio-Economic Objective (SEO) 2008: | 910211 Supply and Demand 910205 Industry Policy 910204 Industry Costs and Structure |
Socio-Economic Objective (SEO) 2020: | 150511 Supply and demand 150505 Industry policy 150504 Industry costs and structure |
Peer Reviewed: | Yes | HERDC Category Description: | C1 Refereed Article in a Scholarly Journal |
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Appears in Collections: | Journal Article |
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