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1 - Policy Frameworks and Institutions for Decarbonisation: The Energy Sector as ‘Litmus Test’

Published online by Cambridge University Press:  08 October 2021

Kenneth G. H. Baldwin
Affiliation:
Australian National University, Canberra
Mark Howden
Affiliation:
Australian National University, Canberra
Michael H. Smith
Affiliation:
Australian National University, Canberra
Karen Hussey
Affiliation:
University of Queensland
Peter J. Dawson
Affiliation:
P. J. Dawson & Associates
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Summary

Reducing greenhouse gas emissions is an economy-wide challenge so policy to reduce emissions has to accommodate varying scope and scale to reach all sectoral processes. This chapter focuses on the complexity and challenges inherent in developing climate policy for electricity supply and for energy use in all industry and transport sectors. Policy frameworks need to take account of the context, competing social and economic objectives, global competitiveness and the expectations of industry participants and consumers. Energy policy to accommodate climate imperatives will always involve integrating policy into existing frameworks, which adds to the layers of complexity. The advantages and disadvantages of the variety of tools required to create incentives for investment, consumer behaviour change and institutional adaptation are also considered. Inevitably, policy formulation will involve hard political choices, so the chapter concludes with thoughts on managing the politics.

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Publisher: Cambridge University Press
Print publication year: 2021

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