Hi there!This is my assignment for Prices and Markets. I attach the file as referencewhere the...

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Hi there!This is my assignment for Prices and Markets. I attach the file as referencewhere the information has to be writtenfrom it.Assessment Task 2b – Industry Project into the Market for Fossil Fuel Electricity Generation in Australia.      1. The Market    1.1 Define the market. In your answer, you will need to identify the buyers, sellers, the product exchanged and the sources of electricity in this market. You will also need to briefly explain how the wholesale electricity market operates. (maximum 200 words).1.1 Identify the market structure of the industry. Explain how you reached your decision using economic theory and facts. (maximum 200 words)

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1.1 Define the market. In your answer, you will need to identify the buyers, sellers, the product exchanged and the sources of electricity in this market. You will also need to briefly explain how the wholesale electricity market operates. (maximum 200 words).
Fossil Fuel Electricity Generation industry plays a very important role in Australia’s energy policy.  It is a government regulated industry that provides majority of Australia’s electricity.  The industry is experiencing a change in regulatory environment and volatile price during last five years. Fossil fuel electricity generation is highly carbon sensitive – it contributes a significant portion of Australia’s carbon emission. The carbon tax was introduced in Australia by 2012 but the tax was repealed in Australia by Tony Abbott Government in 2014. The carbon tax was repealed primarily because of the high electricity prices. The price of wholesale electricity is rising at an accelerating pace. The shutdown of baseload power stations, rising gas prices at the domestic level and lack of investment on new generation capacity for a longer period of time are some of the key factors that have contributed a surge in electricity prices.

Hi there! This is my assignment for Prices and Markets. I a ttach the file as reference where the information has to be written from it. Assessment Task 2b – Industry Project into the Market for...

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