The boomerang paradox : how a nation's wealth is creating fuel poverty - and how to defuse the cycle /Series: AGL Applied Economic & Policy Research working paperPublication details: North Sydney, N.S.W. AGL 2010Description: PDFOther title:
- AGL Applied Economic & Policy Research working paper ; no. 17
April 2010 Bibliography pp. 28-30
A characteristic of advanced economies is continual growth in household income and plunging costs of electric appliances. In Australia, increases in household floor-space combined with power prices that are among the lowest in the world have resulted in rapid growth in peak demand. The power grid in turn requires substantial incremental generating and network capacity, which is utilized momentarily at best. As the cost of augmentation is gradually revealed, fuel poverty seems predictable. We call this the Boomerang Paradox; the nation's rising wealth has created the pre-conditions for fuel poverty. But appropriate and timely policy settings can defuse its effects.