Economics for Business: Evaluating Australia's Position on Renewable Energy

Running Head: ECONOMICS FOR BUSINESS
Economics for Business
Name of the Student
Name of the University
Author note

1ECONOMICS FOR BUSINESS
Table of Contents
Introduction......................................................................................................................................2
Brief overview of article..................................................................................................................2
Economic evaluation of the article..................................................................................................3
Recommendation.............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2ECONOMICS FOR BUSINESS
Introduction
The resources that are available at unlimited amount are known as renewable sources of
energy. There is no fear of exhaustion of such resources in future. Energy today is used in every
sphere of life. Not only industries but household in nation needs electricity for various purposes.
The power supply thus needs a security in future. In order to ensure a smooth supply of energy
for future different nation have now attempted to shift their reliance on renewable energy
resources (Weitemeyer et al., 2015). Australia is one of the leading nation that focuses on
different renewable sources. The paper spots light on Australia’s position on the renewable
energy resources with help of a published new article.
Brief overview of article
Australian energy minister Josh Frydenberg has recently expressed his strong stand
against government support to support power station using renewable energy resources. The
supportive policy of government ultimately imposes additional burden on household in Australia.
It has been estimated that average household has to pay additional $60 in a year to support
government subsidies given to meet renewable energy market (theaustralian.com.au 2018). The
additional cost on if household is estimated to be between $20 and $30 billion by 2030.
Frydenberg also expresses his concern regarding discriminatory energy policy of Turnbull’s
government under which no subsidies are proposed for traditional coal fired plants. This raises
question regarding underlying ideology of the concerned policy.
The energy ministry makes his argument in favor of a free market arrangement to attain
the goal of National Energy Guarantee. In the meeting held at National Press Club, he shows
government attempts to intervene in the energy market have resulted in a market failure. Instead