Jul 09, 2010 - 1:34pm
This paper estimates that uncertainty around whether government will place a price tag on pollution will cost the economy and consumers $2 billion a year in higher electricity prices. Prepared by economists and energy market experts, the paper estimates the additional cost to electricity users resulting from a delay in regulatory certainty on the cost of pollution.
The additional economic impacts are driven by a stop start approach to delivering public policy settings to limit pollution. This is having a profound effect – and promoting inefficient investment choices - on electricity generation and will be felt through rising electricity prices.
The longer Australia waits to establish an effective policy response, the more these additional costs will impact consumers.