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The Forum > Article Comments > Warped policy priorities and renewable energy > Comments

Warped policy priorities and renewable energy : Comments

By Erika Salmon, published 14/10/2016

Government interventions within the energy market to subsidise wind and solar have often caused more problems than they solved.

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I must admit that I find it staggering that an adult can believe that a few extra taxpayer funded jobs can compensate for the vast loss of jobs that will occur when bulk electricity prices skyrocket. Perhaps a comparison to the oil price shock of the 70s should give one an idea.

http://www.economicshelp.org/blog/1919/oil/effect-of-higher-oil-prices/

When the carbon tax came in a plethora of energy dependent companies closed up shop incl the Aluminium smelters, a blast furnace at Blue scope etc etc, and 75% of car manufacturing jobs were lost.

Not only the large industries will have a huge cost increase, but every single one of the 400 000 odd small businesses.

Secondly a few technical errors:
Nuclear fuel is not a fossil fuel.
Coal fired plants normally last 40-60yrs and nuclear plant longer still, not 20-30yrs.
Coal and Nuclear plants can be phased out when there is a cost effective method of storing energy, or voters are willing to give up their free time and disposable income.
Increasing energy costs will push more people into poverty not less.
Posted by Shadow Minister, Wednesday, 19 October 2016 3:12:16 PM
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"The sky is falling, the sky is falling"...
Posted by Craig Minns, Wednesday, 19 October 2016 7:39:58 PM
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Shadow,

You're making the mistake of assuming that bulk electricity prices will skyrocket. But there's no reason why they should. Renewables, if financed efficiently, have the potential to produce cheaper electricity most of the time.

"When the carbon tax came in a plethora of energy dependent companies closed up shop incl the Aluminium smelters, a blast furnace at Blue scope etc etc, and 75% of car manufacturing jobs were lost."
Considering our dollar and what was happening overseas, that's hardly surprising.

Iceland opened a new hydroelectric power station. Coal fired electricity couldn't compete with that for aluminium smelting. And good riddance! We shouldn't be so environmentally irresponsible as to use coal to power aluminium smelters. Even gas is something we should aim to avoid for that purpose.

Our steelworks were having trouble competing with subsidised ones in China. And cars were no longer the high value product they had once been. The carbon tax pushed up prices a bit, but our high dollar did far more damage.

What nuclear plant's lasted over 60 years?
Posted by Aidan, Thursday, 20 October 2016 1:08:53 AM
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Craig,

Actually the sky is not falling, and there is no need to panic at the dire predictions of the chicken littles in the greens and wreck the economy to meet ideologically driven emission targets.

Aidan,

As the present policy is that the users of the electricity pay for its costs, then huge spending on renewables can only lead to huge electricity prices. And while you still have a fantasy about endless free money, the rest of the world doesn't.

Secondly the smelting moved from high efficiency plants in Aus to low efficiency plants mostly in China driven by coal.
Posted by Shadow Minister, Thursday, 20 October 2016 4:25:10 PM
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SM,
I have never said anything about ideology, my argument is based on economics.

You really are desperate.
Posted by Craig Minns, Thursday, 20 October 2016 5:47:37 PM
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Craig,

You have no clue about economics. Please quote one economist that thinks borrowing $1trillion to increase business and living costs is a good idea.
Posted by Shadow Minister, Thursday, 20 October 2016 6:20:13 PM
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