From all the discussion on Ross Garnaut’s suggestion that electricity prices will increase by 40% by 2020, I think there are some really important questions missing.
- What would have been the increase in electricity prices without the ETS?
- What will be the real increase in average income by 2020?
- What is the overall percentage of electricity costs in a average budget for a typical consumer?
- Will the increase drive down the consumption of electricity which in turn may not increase the actual electricity bill by 40%?
- Is this a small increase to pay for the insurance of climate change risks?
Answering some of these will give a better way to compare to the 40% number. I will see if I can answer some of them. Any suggestions?