%0 Journal Article
%T Queensland solar feed-in tariffs and the merit-order effect: economic benefit, or regressive taxation and wealth transfers?
%A Tim Nelson
%A Paul Simshauser
%J Economic Analysis and Policy
%D 2012
%I 
%X Premium residential solar feed-in tariffs have come under considerable scrutiny in Australia over the past 12 months following a sharp rise in the uptake of subsidised PV units and subsidy cost blow-outs. Using New South Wales data, Nelson, Simshauser and Kelley (2011) demonstrated that the inherent design of premium ¡®gross¡¯ feed-in tariffs are regressive in nature and required reform. Since the publication of that article in Economic Analysis & Policy (September 2011 edition), feed-in tariff policies have been substantially wound back in all Australian jurisdictions except Queensland. In this article, we examine the ¡®net¡¯ feed-in tariff in Queensland and similarly find it to be a regressive form of taxation. We also examine the so-called ¡®merit order effect¡¯ ¨C a purported ¡®economic benefit¡¯ arising from premium feed-in tariffs. However, the evidence is clear that merit order effects must, by definition, be transient and above all, are not welfare enhancing.
%K Feed-in Tariffs
%K Electricity Prices
%K Merit Order Effect
%U http://www.eap-journal.com/archive/v42_i3_01-T.Nelson_P.Simshauser_J.Nelson.pdf