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Policy Options to Reduce Electricity Greenhouse Gas Emissions
Author(s) -
Freebairn John
Publication year - 2018
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.12278
Subject(s) - greenhouse gas , electricity , renewable energy , incentive , environmental economics , natural resource economics , revenue , unit (ring theory) , electricity generation , environmental science , business , economics , engineering , finance , microeconomics , power (physics) , ecology , mathematics education , mathematics , physics , quantum mechanics , electrical engineering , biology
The design and effects of different schemes to reduce greenhouse gas emissions associated with the production and consumption of electricity are modelled. The tax scheme achieves the lowest cost per unit emission reduction because it encourages both businesses and consumers to reduce emissions, and the recycled windfall revenue can meet equity objectives. Comparing the Emissions Intensity Scheme (EIS), Clean Energy Target (CET) and Renewable Energy Target (RET) schemes with common government revenue neutral and emissions reduction design outcomes, the EIS provides better incentives to generators to find the lower cost per unit emissions reduction.