New Research Claims Net Zero Transition Will Not Cause Inflation

A new study claims that inflation from the net zero push was “ill-founded.” The Centre for Policy Development has released a report (pdf) on the connection between Australia’s “green” transition in the next 30 years and inflation. The report cited economic modelling saying it would cost the country $625 billion (US$406 billion) to replace 38 gigawatts of generation capacity from ageing coal and gas power stations to meet a maximum forecasted demand increase of 20 gigawatts by 2050. Meanwhile, the forecasted cost to replace the above 60 gigawatts with fossil fuel-powered generation would be around $400 billion. While the report acknowledged the significant cost difference between the two approaches, it said the additional $225 billion was “small” when spread over several decades from a macroeconomic perspective....