The Economics of the Mandatory Renewable Energy Target (MRET)

Israel del Mundo and Ian R. Wills

No 137838, 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia from Australian Agricultural and Resource Economics Society

Abstract: In response to increasing awareness of climate change, the Howard government implemented the Mandatory Renewable Energy Target (MRET) in 2001. It requires electricity wholesalers to source an additional 9500 GWh of electricity from renewable sources by 2010. Electricity wholesalers are required to subsidise renewable energy generators by purchasing Renewable Energy Certificates (RECs) equivalent to the target; failure to do so incurs a penalty of $40 per megawatt. Economic analysis is used to investigate the design and likely operation and limitations of the MRET.

Keywords: Demand and Price Analysis; Production Economics (search for similar items in EconPapers)
Pages: 24
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare05:137838

DOI: 10.22004/ag.econ.137838

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