The impact of carbon prices on Australia's national electricity market

Wild, Phillip, Bell, William Paul and Foster, John (2014). The impact of carbon prices on Australia's national electricity market. In John Quiggin, David Adamson and Daniel Quiggin (Ed.), Carbon pricing: early experiences and future prospects (pp. 101-122) Cheltenham, United Kingdom: Edward Elgar Publishing. doi:10.4337/9781782547747.00020


Author Wild, Phillip
Bell, William Paul
Foster, John
Title of chapter The impact of carbon prices on Australia's national electricity market
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 10.4337/9781782547747.00020
ISBN 9781782547730
9781782547747
Editor John Quiggin
David Adamson
Daniel Quiggin
Chapter number 6
Start page 101
End page 122
Total pages 22
Total chapters 10
Collection year 2015
Language eng
Abstract/Summary There has been significant debate about how supply-side policy initiatives might potentially affect key participants within the National Electricity Market (NEM) in attempts to curb growth in carbon emissions. Most debate and analysis within this sector has focused on assessing the impact that a 'cap-and-trade' carbon trading scheme, and more recently, a carbon tax scheme, may have on promoting fuel-switching strategies and impacts on existing electricity generating assets each having a defined set of carbon emission intensity factors. The introduction of a carbon price signal achieves this by changing marginal cost relativities in order to promote increased dispatch and investment in less carbon-emission-intensive types of generation technologies, including gas-fired generation and renewable generation technologies. As Australia transitions towards a carbon-constrained economy, alternative policy settings create signals throughout the national electricity industry. To evaluate policy outcomes a model containing many of the salient features of the national wholesale electricity market is required. These features include intra-regional and inter-state trade, realistic transmission network pathways, and competitive dispatch of all generation technologies with price determination based upon variable cost and branch congestion characteristics.
Keyword Economics and finance
Environmental economics
Environment
Climate change
Environmental economics
Environmental politics and policy
Valuation
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: Thu, 05 Dec 2013, 02:08:36 EST by Alys Hohnen on behalf of School of Economics