Understanding the Cost of Net Zero and the Energy Transition: An Australian Study
“Modelling the costs of getting to net zero is an important aspect of informed policymaking. Whilst consensus is that we must be responsible stewards of the environment, policymakers must be alive to the economic costs of the choices made to pursue this goal.”
In this paper, Robin Batterham examines the estimated costs of six possible scenarios for Australia’s route to ‘net-zero’.
Summary of Research Paper
So far, the conversation on the energy transition has focused on the choices available, most of them emphasising the criticality of low emission sources of energy. Other voices contend that we should immediately quit the use of fossil fuels, sequester existing fossil fuels emissions, or follow the nuclear route. Governments have made substantial investments in a cocktail of these choices to reach their respective net zero targets.
It is extraordinary, though, that in pursuing these net zero policy choices, no one has adequately answered the question, “How much is this going to really cost?”
Modelling the costs of getting to net zero is an important aspect of informed policymaking. Whilst consensus is that we must be responsible stewards of the environment, policymakers must be alive to the economic costs of the choices made to pursue this goal.
This essay is not about predicting the future. It is about outlining the consequences of following certain scenarios, those outlined in the Net Zero Australia report. The essay takes the results of that report further by highlighting some unpleasant (to some) realities such as an ongoing need for gas. As well, the essay indicates that the supply of materials for the energy transition requires some heroic assumptions as to availability.
The opinions expressed in the essay are the author’s and do not purport to be the views of the Net Zero Australia project or its participants.
