How I learned to stop worrying and love the RET

Quiggin, John (2014). How I learned to stop worrying and love the RET. In John Quiggin, David Adamson and Daniel Quiggin (Ed.), Carbon pricing: early experiences and future prospects (pp. 89-98) Cheltenham, United Kingdom: Edward Elgar Publishing. doi:10.4337/9781782547747.00018

Author Quiggin, John
Title of chapter How I learned to stop worrying and love the RET
Title of book Carbon pricing: early experiences and future prospects
Place of Publication Cheltenham, United Kingdom
Publisher Edward Elgar Publishing
Publication Year 2014
Sub-type Critical review of research, literature review, critical commentary
DOI 10.4337/9781782547747.00018
Open Access Status
ISBN 9781782547730
Editor John Quiggin
David Adamson
Daniel Quiggin
Chapter number 5
Start page 89
End page 98
Total pages 10
Total chapters 10
Collection year 2015
Language eng
Abstract/Summary The Renewable Energy Target (RET) is one of Australia's most durable policy measures directed at mitigating climate change, dating back to 2001. It has survived changes of government and a series of policy reviews. Economists, however, have rarely found much of merit in the RET. It is seen as a high-cost way of achieving reductions in emissions that could better be pursued through a price-based mechanism such as either an emissions-based trading scheme or a carbon tax. Since the introduction of a carbon price in July 2012, criticism of the RET has intensified. The covering letter from The NSW Independent Pricing and Regulatory Tribunal (IPART, 2012), in its submissions to the Climate Change Authority inquiry into the RET articulates the wider concerns of economists, stating: In our view, the introduction of the carbon price and a move towards an emission trading scheme (ETS) removes the need for the RET (and ultimately electricity customers) to continue to subsidise investment in the renewables sector. The RET is not complementary to the carbon price and does not cost effectively address any other significant market failure. In this chapter, it is argued on the contrary that the RET is not merely complementary to the carbon market, but rather is a welfare-improving policy, even after the introduction of the carbon price.
Keyword Economics and finance
Environmental economics
Climate change
Environmental economics
Environmental politics and policy
Politics and public policy
Q-Index Code B1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Book Chapter
Collections: Official 2015 Collection
School of Economics Publications
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Created: Mon, 14 Jul 2014, 11:37:45 EST by Ms Dulcie Stewart on behalf of School of Economics