Fergus Green

China surprised many observers when its coal consumption (which had grown at more than 8% per year on average since the turn of the century) stopped growing in 2014 and declined in 2015. Some thought this was a temporary blip that would be reversed.

The first post in this three-part series compared the energy plans of Australia's major political parties with the rest of the world. The second post considered the economics of Australia transitioning to a renewables-based energy system. When it comes to the politics of climate change and renewable energy, it is relevant to consider both strategy and tactics. Climate change is not going to be solved with a single giant global treaty and a perfect emissions trading scheme.

The first post in this three-part series compared Australia's decarbonsation plans with the rest of the world. This second post considers the economics of Australia transitioning to a renewables-based energy system. In a recent Grantham Research Institute Working Paper, I argue that the well-managed decarbonisation of a representative country's economy would be nationally net-beneficial even in narrow, neoclassical economic terms, for most sectors.

At the APEC summit last November, Presidents Xi and Obama jointly announced their two countries' new climate change commitments. China's commitment is to peak its CO2 emissions around 2030, and to use its best efforts to peak earlier than that. We are beginning to see the fruits of China's efforts.