IDEAS home Printed from https://ideas.repec.org/a/eee/jelect/v24yi1p72-91.html
   My bibliography  Save this article

The Boomerang Paradox, Part I: How a Nation's Wealth Is Creating Fuel Poverty

Author

Listed:
  • Simshauser, Paul
  • Nelson, Tim
  • Doan, Thao

Abstract

A characteristic of advanced economies like Australia is continual growth in household income and plunging costs of electric appliances, resulting in rapid growth in peak demand. The power grid in turn requires substantial incremental generating and network capacity, which is utilized momentarily at best. The result is the Boomerang Paradox, in which the nation's rising wealth has created the pre-conditions for fuel poverty.

Suggested Citation

  • Simshauser, Paul & Nelson, Tim & Doan, Thao, 0. "The Boomerang Paradox, Part I: How a Nation's Wealth Is Creating Fuel Poverty," The Electricity Journal, Elsevier, vol. 24(1), pages 72-91, January.
    • Handle: RePEc:eee:jelect:v:24:y::i:1:p:72-91
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1040-6190(10)00313-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Simshauser & Phillip Wild, 2009. "The Western Australian Power Dilemma," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 342-369, December.
    2. Paul Simshauser & Elizabeth Molyneux & Michelle Shepherd, 2010. "The Entry Cost Shock and the Re‐rating of Power Prices in New South Wales, Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(2), pages 114-135, June.
    3. Paul Simshauser, 2008. "The Dynamic Efficiency Gains from Introducing Capacity Payments in the National Electricity Market," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(4), pages 349-370, December.
    4. Simshauser, Paul, 2010. "Resource Adequacy, Capital Adequacy and Investment Uncertainty in the Australian Power Market," The Electricity Journal, Elsevier, vol. 23(1), pages 67-84, January.
    5. Peter C. Reiss & Matthew W. White, 2008. "What changes energy consumption? Prices and public pressures," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 636-663, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paul Simshauser, 2011. "The Hidden Costs of Wind Generation in a Thermal Power System: What Cost?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 44(3), pages 269-292, September.
    2. Tim Nelson & Simon Kelley & Fiona Orton & Paul Simshauser, 2010. "Delayed Carbon Policy Certainty and Electricity Prices in Australia," Economic Papers, The Economic Society of Australia, vol. 29(4), pages 446-465, December.
    3. Nelson, Tim & Nelson, James & Ariyaratnam, Jude & Camroux, Simon, 2013. "An analysis of Australia's large scale renewable energy target: Restoring market confidence," Energy Policy, Elsevier, vol. 62(C), pages 386-400.
    4. Fatemeh Nazifi, 2016. "The pass-through rates of carbon costs on to electricity prices within the Australian National Electricity Market," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 41-62, January.
    5. Orton, Fiona & Nelson, Tim, 2015. "Relief in sight: Why residential electricity costs in Eastern Australia may fall between 2015 and 2020," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 57-70.
    6. Paul Simshauser & Tim Nelson, 2012. "The second‐round effects of carbon taxes on power project finance," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 4(2), pages 104-127, May.
    7. Barry Ball & Bertram Ehmann & John Foster & Craig Froome & Ove Hoegh-Guldberg & Paul Meredith & Lynette Molyneaux & Tapan Saha & Liam Wagner, 2011. "Delivering a Competitive Australian Power System. Part 1: Australia’s Global Position," Energy Economics and Management Group Working Papers 13, School of Economics, University of Queensland, Australia.
    8. Foster, John & Wagner, Liam & Liebman, Ariel, 2015. "Modelling the Electricity and Natural Gas Sectors for the Future Grid: Developing Co-Optimisation Platforms for Market Redesign," MPRA Paper 70114, University Library of Munich, Germany.
    9. Tim Nelson, 2017. "Redesigning a 20th century regulatory framework to deliver 21st century energy technology," Journal of Bioeconomics, Springer, vol. 19(1), pages 147-164, April.
    10. Phil Wild & William Paul Bell & John Foster, 2012. "The Impact of Carbon Pricing on Wholesale Electricity Prices, Carbon Pass-Through Rates and Retail Electricity Tariffs in Australia," Energy Economics and Management Group Working Papers 5-2012, School of Economics, University of Queensland, Australia.
    11. Paul Simshauser and David Downer, 2016. "On the Inequity of Flat-rate Electricity Tariffs," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simshauser, Paul, 2010. "Vertical integration, credit ratings and retail price settings in energy-only markets: Navigating the Resource Adequacy problem," Energy Policy, Elsevier, vol. 38(11), pages 7427-7441, November.
    2. Paul Simshauser, 2011. "The Hidden Costs of Wind Generation in a Thermal Power System: What Cost?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 44(3), pages 269-292, September.
    3. Simshauser, Paul & Tian, Yuan & Whish-Wilson, Patrick, 2015. "Vertical integration in energy-only electricity markets," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 35-56.
    4. Paul Simshauser & Elizabeth Molyneux & Michelle Shepherd, 2010. "The Entry Cost Shock and the Re‐rating of Power Prices in New South Wales, Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(2), pages 114-135, June.
    5. Simshauser, Paul, 2018. "On intermittent renewable generation & the stability of Australia's National Electricity Market," Energy Economics, Elsevier, vol. 72(C), pages 1-19.
    6. Laurie Buys & Desley Vine & Gerard Ledwich & John Bell & Kerrie Mengersen & Peter Morris & Jim Lewis, 2015. "A Framework for Understanding and Generating Integrated Solutions for Residential Peak Energy Demand," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-20, March.
    7. Nelson, Tim & Nelson, James & Ariyaratnam, Jude & Camroux, Simon, 2013. "An analysis of Australia's large scale renewable energy target: Restoring market confidence," Energy Policy, Elsevier, vol. 62(C), pages 386-400.
    8. Tim Nelson & Simon Kelley & Fiona Orton & Paul Simshauser, 2010. "Delayed Carbon Policy Certainty and Electricity Prices in Australia," Economic Papers, The Economic Society of Australia, vol. 29(4), pages 446-465, December.
    9. Nelson, James & Simshauser, Paul, 2013. "Is the Merchant Power Producer a broken model?☆☆The views expressed in this paper are those of the authors and any errors or omissions remain the responsibility of the authors," Energy Policy, Elsevier, vol. 53(C), pages 298-310.
    10. Paul Simshauser & Tim Nelson, 2012. "The second‐round effects of carbon taxes on power project finance," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 4(2), pages 104-127, May.
    11. Nelson, Tim & Reid, Cameron & McNeill, Judith, 2015. "Energy-only markets and renewable energy targets: Complementary policy or policy collision?," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 25-42.
    12. ITO Koichiro & IDA Takanori & TANAKA Makoto, 2015. "The Persistence of Moral Suasion and Economic Incentives: Field experimental evidence from energy demand," Discussion papers 15014, Research Institute of Economy, Trade and Industry (RIETI).
    13. McConnell, Dylan & Forcey, Tim & Sandiford, Mike, 2015. "Estimating the value of electricity storage in an energy-only wholesale market," Applied Energy, Elsevier, vol. 159(C), pages 422-432.
    14. Morikawa, Masayuki, 2012. "Population density and efficiency in energy consumption: An empirical analysis of service establishments," Energy Economics, Elsevier, vol. 34(5), pages 1617-1622.
    15. Huse, Cristian & Lucinda, Claudio & Cardoso, Andre Ribeiro, 2020. "Consumer response to energy label policies: Evidence from the Brazilian energy label program," Energy Policy, Elsevier, vol. 138(C).
    16. Diffney, Seán & Lyons, Seán & Malaguzzi Valeri, Laura, 2013. "Evaluation of the effect of the Power of One campaign on natural gas consumption," Energy Policy, Elsevier, vol. 62(C), pages 978-988.
    17. Pedro Linares & Xavier Labandeira, 2010. "Energy Efficiency: Economics And Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 573-592, July.
    18. Francisco Costa & François Gerard, 2021. "Hysteresis and the Welfare Effect of Corrective Policies: Theory and Evidence from an Energy-Saving Program," Journal of Political Economy, University of Chicago Press, vol. 129(6), pages 1705-1743.
    19. Chong, Howard, 2012. "Building vintage and electricity use: Old homes use less electricity in hot weather," European Economic Review, Elsevier, vol. 56(5), pages 906-930.
    20. Andrea Szabo & Gergely Ujhelyi, 2014. "Can Information Reduce Nonpayment for Public Utilities? Experimental Evidence from South Africa," Working Papers 2014-114-31, Department of Economics, University of Houston.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jelect:v:24:y::i:1:p:72-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600875/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.