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Trials and tribulations of market responses to climate change: Insight through the transformation of the Australian electricity market

Author

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  • Tracey Dodd

    (The University of Adelaide, Adelaide, SA, Australia)

  • Tim Nelson

    (Griffith University, Brisbane, QLD, Australia)

Abstract

We analyse the energy transition from coal to renewable. Our research contributes to the literature on transitions and grand challenges. Mitigating the effects of dangerous human-induced climate change requires Australia to adopt a ‘carbon budget’ of no more than 10 Gt between 2015 and 2050. To achieve this, the Australian electricity sector must reduce greenhouse gas emissions to at least net zero emissions by 2050. Australia’s strategic response to climate change will have a significant influence on greenhouse gas emissions across Asia and the Pacific. The transition to renewables has proved difficult. The Liddell case study, involving closure of an ageing coal-fired power station, shows how the transition was impeded by institutional decisions. While firm-level actors recognised opportunities, regulators resisted the transition. Our research illustrates that transitions for grand challenges may require a relational stakeholder review, beyond the concept of short-term win–wins. JEL Classification: L02, D02, Q05

Suggested Citation

  • Tracey Dodd & Tim Nelson, 2019. "Trials and tribulations of market responses to climate change: Insight through the transformation of the Australian electricity market," Australian Journal of Management, Australian School of Business, vol. 44(4), pages 614-631, November.
    • Handle: RePEc:sae:ausman:v:44:y:2019:i:4:p:614-631
    DOI: 10.1177/0312896219874096
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Paul Simshauser & Farhad Billimoria & Craig Rogers, 2021. "Optimising VRE plant capacity in Renewable Energy Zones," Working Papers EPRG2121, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Simshauser, P. & Newbery, D., 2023. "Non-Firm vs. Priority Access: on the Long Run Average and Marginal Cost of Renewables in Australia," Cambridge Working Papers in Economics 2363, Faculty of Economics, University of Cambridge.
    3. Best, Rohan & Burke, Paul J., 2023. "Small-scale solar panel adoption by the non-residential sector: The effects of national and targeted policies in Australia," Economic Modelling, Elsevier, vol. 120(C).
    4. Gohdes, Nicholas & Simshauser, Paul & Wilson, Clevo, 2023. "Renewable investments, hybridised markets and the energy crisis: Optimising the CfD-merchant revenue mix," Energy Economics, Elsevier, vol. 125(C).
    5. Stephen Brammer & Layla Branicki & Martina Linnenluecke & Tom Smith, 2019. "Grand challenges in management research: Attributes, achievements, and advancement," Australian Journal of Management, Australian School of Business, vol. 44(4), pages 517-533, November.
    6. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    7. Gohdes, N.Nicholas & Simshauser,P. & Wilson, C., 2023. "Renewable investments in hybridised energy markets: optimising the CfD-merchant revenue mix," Cambridge Working Papers in Economics 2334, Faculty of Economics, University of Cambridge.
    8. Nelson, Tim & Dodd, Tracey, 2023. "Contracts-for-Difference: An assessment of social equity considerations in the renewable energy transition," Energy Policy, Elsevier, vol. 183(C).
    9. Danny Zhao‐Xiang Huang, 2022. "An integrated theory of the firm approach to environmental, social and governance performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1567-1598, April.
    10. Dodd, Tracey & Nelson, Tim, 2022. "Australian household adoption of solar photovoltaics: A comparative study of hardship and non-hardship customers," Energy Policy, Elsevier, vol. 160(C).

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    More about this item

    Keywords

    Climate change; climate change knowledge; decision-making; energy industry; grand challenge; transition;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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