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Australia's Power Deregulation Experience
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This note examines the economic and political impact of the Australian government's deregulation and climate change policies, as well as a slew of additional corresponding market factors, on Australia's energy and electricity markets. Since the Australian government began its concerted effort to deregulate the power generation industry in the 1990s, prices for electricity and natural gas have risen significantly faster than either automotive fuel or the broader Australian consumer price index. As a result, Australia's energy and electricity markets and the government's intervention (or lack thereof) in these markets have become an extremely important and divisive political issue for the country.