Replacing the policy scattergun with a scalpel: setting energy policy in a greenhouse gas constrained environment
Stephen Martin A and Nathan Taylor ACEDA.
The APPEA Journal 53(2) 450-450 https://doi.org/10.1071/AJ12061
Published: 2013
Abstract
Policy uncertainty is a significant issue for all companies in the energy sector. It is particularly problematic when policy decisions are made to change the nature of the energy sector, both now and during the coming decades. Government climate change policy has the potential to reshape the exploration and development of both oil and gas reserves.
The energy sector requires policy certainty to undertake long-term decisions. This can occur only when government makes socially sustainable, robust, and well-reasoned climate change policy. The core challenge is determining the merit of different choices given the magnitude of uncertainty that needs to be dealt with. Quantifying the uncertainty of technological innovation, future greenhouse gas emission costs, and capital and operating costs over time allows for the comparison of alternative policies to encourage the deployment of low-carbon technologies.
A reliable and affordable supply of energy is a fundamental component to a vibrant economy. CEDA’s research project, Australia’s energy options, has sought to provide objective evidence for informed decision making. It has involved three policy perspectives examining Australia’s nuclear options: renewables and efficiency; unconventional energy options; and, a reform agenda that would enhance the energy sector’s efficiency, security, and effectiveness.
This extended abstract builds on this extensive research and discusses how governments at all levels can deal with the uncertainty of climate change and make long-term decisions that will underpin investment decisions across the energy sector.
Stephen Martin has had a long and distinguished background in the Australian Parliament, academia, and the private sector. He represented the NSW-based electorates of Macarthur and Cunningham in the Commonwealth Parliament from 1984 to 2002. In government, he served as Speaker of the House of Representatives, Parliamentary Secretary for Foreign Affairs and Trade, and chairman of the Inquiry into the Australian Banking Industry. As a member of the Shadow Cabinet, he held portfolios in defence, small business, and trade and tourism. After retiring from parliament, he held a number of senior executive roles in academia, including president/CEO of the University of Wollongong, Dubai, pro vice chancellor international at Victoria University, Melbourne, and deputy vice chancellor (strategy and planning) at Curtin University, Perth. He has undertaken a number of strategic and change management roles in the private and public sectors. He is a director of Global Science and Technology Forum, Singapore, and visiting professor at Sydney Business School, University of Wollongong. His interests are in economics, education, politics, corporate governance, financial services, defence and trade policy, and sport. |
Nathan Taylor is the chief economist at CEDA and a behavioural economist. He is responsible for CEDA’s research and policy agenda. He has been responsible for CEDA’s research programs about Australia’s energy options, crisis and opportunity: lessons from Australian Water Reform and A greater Australia: population, policies and governance. He has also edited Australia’s nuclear options, renewables and efficiency and Australia’s unconventional energy options. He has authored the papers Insuring Australia’s cities against drought, Urban water security: water for the farm and city, and Australia’s energy options: policy choice, not economic inevitability. He has held a series of policy roles at the RBA, CCI WA, WALGA, and others. He is the author of the behavioural economics blog The Writings of a Naked Ape. |
References
Brugess, J., 2011—Financial uncertainty of technology change: renewables and efficiency. CEDA Policy Perspective, May. Melbourne, Australia: CEDA.Clean Energy Finance Corporation, 2011—The CEFC. Accessed April 2012. http://www.cefcexpertreview.gov.au/content/Content.aspx?doc=thecefc.htm.
Irwin, T., 2011—Small modular reactors: Australia’s nuclear options. CEDA policy perspective, November. Melbourne, Australia: CEDA.
Mountain, B., 2011—Renewable electricity in Australia: outcomes and prospects. A report for Energy Users Association of Australia (EUAA). Box Hill, Victoria, Australia: EUAA.
