Net zero more important than energy costs: Economists

Achieving net zero emissions by 2050 is the most important goal of Australia's energy transformation for economists, preferably via a carbon price.

That's according to The Economic Society of Australia, which surveyed the top 40 economists, found most believe net zero emissions by 2050 is the most important thing for Australia to achieve. This is followed by ensuring reliability of the power supply and minimising the total cost of generation, distribution and retailing; just five considered cost to be most important.

A carbon price is the preferred mechanism for reaching this goal, while the least favoured is nuclear generation. About 40% picked extending the existing carbon price embedded in the safeguard mechanism applied to heavy industry, while 50% opted for firm commitments to not extend the life of coal-fired plants.

Twenty-two percent backed direct government funding of the preferred forms of generation and transmission, while 40% are in favour of investment subsidies, the research stated.

After also nominating their second-most important goals, "all up, 79% of those surveyed picked achieving net zero as one of the two most important goals, and only 36% picked minimising cost."

In 2040, they believe the optimal power mix would be 69% renewables, 14% gas, 7% coal, and 5%; currently, coal accounts for 46% of all energy.

Independent economist Saul Eslake said while he has no ideological objection to nuclear power, he remains unconvinced it would be cheaper than a predominantly renewables-based system, even when accounting for the building of required infrastructure.

However, the research noted he was concerned about the prospect of the Federal Electricity Commission that would be required to build and run the reactors."It is relevant to me that the private sector is willing to invest in renewable energy generation infrastructure and the associated required transmission infrastructure, albeit with tax breaks and subsidies, but there is no commensurate willingness on the part of private investors to invest in nuclear generation," Eslake said.