A gap remains between Federal Coalition Government and Federal Labor ambitions for emissions reductions. Labor is attempting to bridge the divide (or wedge the Government) by adopting the mechanism that the Government developed and then abandoned: the National Energy Guarantee (NEG). We project that Labor’s 45% emissions reduction target will result in prices that are about the same as the Federal Government’s current policy of achieving an emissions reduction of 26% by 2030. Importantly, we also find that the Government’s costly Snowy 2.0 proposal does not deliver any price or emissions benefit. It is a waste of money.DOWNLOAD FULL PUBLICATION
The post-GFC period has witnessed the emergence of a new 'school' of heterodox macroeconomic thinking known as Modern Monetary Theory, or 'MMT'. While conventional macroeconomics has focused on refining existing policy frameworks to better account for recent experience and contemporary conditions, MMT purports to overturn the conventional wisdom altogether. While it offers a seemingly irresistible intuitive appeal, MMT unfortunately has little to offer that is new or helpful to policy-makers and much that is harmful.
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