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What’s next for the Renewable Energy Target – resolving Australia’s integration of energy and climate change policy?*

What’s next for the Renewable Energy Target – resolving Australia’s integration of energy and... Australian climate change policy and its integration with Australia’s electricity markets have been fraught for at least two decades. The only enduring policy has been the Commonwealth Renewable Energy Target (RET). Despite the relative success of the RET in driving investment and reducing emissions, state governments have now pivoted towards contracts‐for‐difference (Cfds). In this article, we outline the issues associated with policy discontinuity and the large‐scale RET and review its effectiveness as an emissions reduction tool and driver of electricity sector abatement. We find that the RET has been relatively successful across the key criteria of cost and emissions reductions and is a better policy instrument than contracts‐for‐difference, which are increasingly being adopted by state governments. Building on the work of Nelson et al. (2020), we propose a new approach, which would allow for continued use of Cfds but utilising the RET’s policy architecture. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Australian Journal of Agricultural Resource Economics Wiley

What’s next for the Renewable Energy Target – resolving Australia’s integration of energy and climate change policy?*

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References (62)

Publisher
Wiley
Copyright
Copyright © 2022 Australian Agricultural and Resource Economics Society Inc.
ISSN
1364-985X
eISSN
1467-8489
DOI
10.1111/1467-8489.12457
Publisher site
See Article on Publisher Site

Abstract

Australian climate change policy and its integration with Australia’s electricity markets have been fraught for at least two decades. The only enduring policy has been the Commonwealth Renewable Energy Target (RET). Despite the relative success of the RET in driving investment and reducing emissions, state governments have now pivoted towards contracts‐for‐difference (Cfds). In this article, we outline the issues associated with policy discontinuity and the large‐scale RET and review its effectiveness as an emissions reduction tool and driver of electricity sector abatement. We find that the RET has been relatively successful across the key criteria of cost and emissions reductions and is a better policy instrument than contracts‐for‐difference, which are increasingly being adopted by state governments. Building on the work of Nelson et al. (2020), we propose a new approach, which would allow for continued use of Cfds but utilising the RET’s policy architecture.

Journal

The Australian Journal of Agricultural Resource EconomicsWiley

Published: Jan 1, 2022

Keywords: electricity market; production subsidy; variable renewable energy

There are no references for this article.