Australia’s renewable energy policy: the case for intervention

Byrnes, Liam and Brown, Colin (2015): Australia’s renewable energy policy: the case for intervention.

Abstract

As Australia grapples with increasing renewable energy penetration and the appropriate climate change strategy, renewable energy policy plays an increasingly important role. In recent years the renewable energy policy environment has become increasingly politicised and uncertain. The implications for the industry are significant. In light of this policy environment, this paper sets out the economic theory behind public sector market intervention and contextualises it within the Australian renewable energy context. It highlights the barriers facing renewable energy deployment and explores the current status of Australian renewable energy policy. This analysis reveals market failures and other barriers to deployment as well as entrenched enabling policy, regulatory and institutional frameworks for fossil fuel industries. This context was found to justify government intervention to support the renewables sector and improve overall economic efficiency. Building on this analysis, five observations relevant to the development of future renewable energy policy are outlined.

• Item Type: MPRA Paper
• Language: English
• Keywords: Energy Policy; Energy; Renewable Energy Policy; Renewable; Policy Development; Australia
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E65 - Studies of Particular Policy Episodes; H - Public Economics > H0 - General; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights

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