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Green Power
The term "green power" usually refers to energy sources which, rightly or wrongly, are considered to be environmentally friendly and sustainable. The "green" in green power can, however, also refer to the taxpayer funds spent on economically unsound energy policies.

In a report to Australia's Minister for Energy, the state of Western Australia's independent economics watchdog, warned about the cost to consumers of green energy. Specifically the Economic Regulation Authority explained that:

"Renewable energy incentive schemes will be a major driver of higher electricity prices in Western Australia and impose significant additional costs on consumers. The Authority is concerned that unless there is pressure on retailers to procure 'green' electricity at the lowest cost, then inefficient costs will be passed onto consumers."

The report further noted that:

"Evidence shows the current federal and state renewable energy incentive schemes are an expensive, economically inefficient means to achieve the policy objective of greenhouse gas abatement."

The watchdog's report is a warning, not just to Australia but also to the United States and other governments promoting renewable energy. In this economically precarious time of over-extended and unsustainable government budgets, it is crucial that federal, state and local energy programs be subject to strict benefit-cost tests.

See Economic Regulation Authority report

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