Mitigating Climate Change through Electrification - Final Report

This policy achieves the greatest abatement because it is the only policy to target more than one sector of the economy. [...] This approach is important because the effect of the policy package is not necessarily equal to the sum of individual policy impacts. [...] In this instance, the impact of the financial incentive is to reduce the cost of compliance with the regulation rather than achieve additional abatement. [...] For example, the impact of the carbon price is reduced due to regulations requiring the use of zero emission space heating. [...] As highlighted above, these policies complement the remainder of the policy package by ensuring that low carbon electricity is available to meet the demand from efforts to electrify end-uses.