Unraveling Economic and Political Complexities Arising from Australia’s Energy Transition on GHGs
摘要
In this chapter, the authors study the impact of Australia’s energy transition on GHGs to highlight economic and political complexities thereof and offer policy recommendations to accelerate the country’s renewable energy deployment. The authors employ annual time series macroeconomic data from 2000–2022 to estimate short- and long-term effects of Australia’s energy transition on GHGs, the Autoregressive Distributed Lag (ARDL) bounds test for cointegration to verify the relationship between the two, and the Granger causality test to examine causal links. Findings show that Australia’s energy transition can effectively curb GHGs. The aforementioned multivariate Granger causality tests further confirm the unidirectional causal relationship between energy transition and GHGs, laying a foundation for relevant policy by providing crucial empirical support. These findings remain robust across different econometric specifications.