Answer to Question #162846 in Microeconomics for Sudar

Question

Affordable and reliable electricity has been a crucial building block of our modern cities, industries and lifestyles. Australia has been blessed with an abundance of resources and energy, giving us a competitive international advantage in cheap, secure power.

Governments state and federal have conspired to forfeit that advantage with policies designed to make electricity supplies more expensive and less reliable in order to reduce carbon dioxide emissions. While worldwide greenhouse gas emissions have been rising substantially these policies have reduced our emissions by an amount that is minuscule and inconsequential in global terms. Yet we continue down this path.

Labor are arguing against privatisation of the electricity assets, arguing that they should be kept in public hands because are still profitable for the state, delivering $1.7 billion to state coffers last year, and that power prices would be likely to rise under the plan.

 

Problem Statement

 

Most state governments have sold their electricity enterprises wholly or partly. Victoria and South Australia fully privatised their systems by the early 2000s. NSW partially privatised its network business after 2015. Queensland privatised the retail sector but maintained public ownership of the network and some electricity generation.

Answer this question, Bellow

Which political party would you support, if your decision were solely based on the continued implementation or abolishment of this energy policy?

Justify and present your findings in a presentation.

Answer 1

Partially privitize the electricity enterprises.

It is important to think based on solid engineering and sound economics in this modern world and not subsidies and weather. This will then help the prime minister to redistribute climate and energy settings to reduce prices, boost supply and encourage investment.