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The implications of Australia's carbon pollution reduction scheme for its National Electricity Market

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  • Betz, Regina
  • Owen, Anthony D.

Abstract

This paper assesses the major implications for the National Electricity Market of the introduction of a domestic cap-and-trade carbon pollution reduction scheme in Australia. The electricity sector is the largest source of emissions in the Australian economy, and it is this sector, therefore, that will bear the brunt of the impact of the proposed scheme. The paper addresses core issues for the electricity market up to 2020 operating under the scheme. It focuses specifically on its impact on electricity prices and generation technology mix. These two variables have been assessed using a number of models, each applying different assumptions about key impact factors. In this paper we present a comparative summary of the results of the three highest-profile models and compare their assumptions in order to explain differences in projected outcomes. This comparison will give an indication of the likely range of impacts on the market of the current design of the scheme.

Suggested Citation

  • Betz, Regina & Owen, Anthony D., 2010. "The implications of Australia's carbon pollution reduction scheme for its National Electricity Market," Energy Policy, Elsevier, vol. 38(9), pages 4966-4977, September.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:9:p:4966-4977
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    References listed on IDEAS

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    1. Frank Jotzo & Regina Betz, 2009. "Australia's emissions trading scheme: opportunities and obstacles for linking," Climate Policy, Taylor & Francis Journals, vol. 9(4), pages 402-414, July.
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    1. Ying Zhang & Yingli Huang, 2023. "Killing Two Birds with One Stone or Missing One of Them? The Synergistic Governance Effect of China’s Carbon Emissions Trading Scheme on Pollution Control and Carbon Emission Reduction," Sustainability, MDPI, vol. 15(13), pages 1-25, June.
    2. Heindl, Peter & Voigt, Sebastian, 2011. "A practical approach to offset permits in post Kyoto climate policy," ZEW Discussion Papers 11-043, ZEW - Leibniz Centre for European Economic Research.
    3. Buckman, Greg & Sibley, Jon & Ward, Megan, 2019. "The large-scale feed-in tariff reverse auction scheme in the Australian Capital Territory 2012, to 2016," Renewable Energy, Elsevier, vol. 132(C), pages 176-185.
    4. Schmidt, Tobias S. & Schneider, Malte & Hoffmann, Volker H., 2012. "Decarbonising the power sector via technological change – differing contributions from heterogeneous firms," Energy Policy, Elsevier, vol. 43(C), pages 466-479.

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