The carbon tax and the crisis in Australia’s National Electricity Market

Ricardo Gonçalves; Flavio Menezes

doi:10.1016/j.eneco.2024.107522

The carbon tax and the crisis in Australia’s National Electricity Market

Ricardo Gonçalves^*, Flavio Menezes

^*Autor correspondente para este trabalho

Resultado de pesquisa › revisão de pares

2 Citações (Scopus)

13 Transferências (Pure)

Resumo

Australia faced a severe energy crisis in 2022, which prompted the Australian Energy Market Operator to halt in National Electricity Market operations from June 15 to June 24. In this study, which examines half-hourly data from Australia’s National Electricity Market between 2010 and 2016, we aim to demonstrate the notable and intended consequences of the carbon tax, which was enacted in 2012 and repealed in 2014. Our findings show that this tax had a significant impact on wholesale prices. It also induced substitution effects in the generation mix. If these effects had persisted, the electricity generation landscape in 2022 would have been different. Specifically, the economic feasibility of coal would have decreased and that of gas would have increased. As a result, the composition of electricity generating capacity leading up to the 2022 crisis would have been altered.

Idioma original	English
Número do artigo	107522
Número de páginas	35
Revista	Energy Economics
Volume	133
DOIs	https://doi.org/10.1016/j.eneco.2024.107522
Estado da publicação	Publicado - mai. 2024

ODS da ONU

Este resultado contribui para o(s) seguinte(s) Objetivo(s) de Desenvolvimento Sustentável

Acesso ao documento

10.1016/j.eneco.2024.107522Licença:

96965053Final published version, 2,44 MBLicença:

http://hdl.handle.net/10400.14/44953Licença:

Outros arquivos e links

Link to publication in Scopus

CEGE: Research Center in Management and Economics
Silva, M. (Professor Catedrático), Sousa, R. (Professor Catedrático), Alves, P. (Professor Auxiliar), Madsen, A. (Professor Auxiliar Convidado), Lourenço, A. (Professor Associado), Carvalho, A. S. (Professor Associado), Andrade, A. (Professor Auxiliar), Silva, P. D. (Professor Associado), Vlačić, B. (Professor Auxiliar Convidado), Martins, C. (Professor Auxiliar Convidado), Gomes, C. (Investigador Auxiliar), Gevrek, Z. E. (Professor Auxiliar Convidado), Oliveira, F. G. D. (Professor Associado), Faria, G. (Professor Associado Convidado), Marreiros, H. (Bolseiro), Pinho, J. (Professor Auxiliar Convidado), Machado, J. (Professor Associado), Araújo, J. (Investigador Auxiliar), Pinto, J. (Professor Auxiliar), Rego, A. (Professor Catedrático), Gaspar, J. M. (Investigador Auxiliar), Corbo, L. (Professor Auxiliar Convidado), Costa, L. (Professor Associado), Fernandes, L. (Professor Auxiliar), Sottomayor, M. (Professor Auxiliar), Martins, N. (Professor Catedrático), Hernández-Marrero, P. (Investigador Auxiliar), Gonçalves, R. (Professor Associado), Ribeiro, R. (PI), Coelho, S. L. (Docente Assistente), Pereira, S. M. (Investigador Auxiliar), Silva, S. (Professor Associado), Rodrigues, V. (Professor Associado), Sotiros, D. G. (Investigador Auxiliar), Valverde, C. (Professor Auxiliar), Leitão, A. (Professor Auxiliar), Julião, J. (Professor Auxiliar), Tavares, M. (Professor Auxiliar), Lages, C. R. (Investigador Auxiliar), Elmashhara, M. G. (Investigador Auxiliar) & Teymourifar, A. (Investigador Auxiliar)
1/01/20 → 31/12/24
Projeto

Citação

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abstract = "Australia faced a severe energy crisis in 2022, which prompted the Australian Energy Market Operator to halt in National Electricity Market operations from June 15 to June 24. In this study, which examines half-hourly data from Australia{\textquoteright}s National Electricity Market between 2010 and 2016, we aim to demonstrate the notable and intended consequences of the carbon tax, which was enacted in 2012 and repealed in 2014. Our findings show that this tax had a significant impact on wholesale prices. It also induced substitution effects in the generation mix. If these effects had persisted, the electricity generation landscape in 2022 would have been different. Specifically, the economic feasibility of coal would have decreased and that of gas would have increased. As a result, the composition of electricity generating capacity leading up to the 2022 crisis would have been altered.",

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AB - Australia faced a severe energy crisis in 2022, which prompted the Australian Energy Market Operator to halt in National Electricity Market operations from June 15 to June 24. In this study, which examines half-hourly data from Australia’s National Electricity Market between 2010 and 2016, we aim to demonstrate the notable and intended consequences of the carbon tax, which was enacted in 2012 and repealed in 2014. Our findings show that this tax had a significant impact on wholesale prices. It also induced substitution effects in the generation mix. If these effects had persisted, the electricity generation landscape in 2022 would have been different. Specifically, the economic feasibility of coal would have decreased and that of gas would have increased. As a result, the composition of electricity generating capacity leading up to the 2022 crisis would have been altered.

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The carbon tax and the crisis in Australia’s National Electricity Market

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ODS da ONU

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CEGE: Research Center in Management and Economics

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