The Impact of Renewable Energy Rebates on Environmental Sustainability in Australia

This study investigates the influence of renewable energy rebates on the quality of the environment in Australia, with a specific emphasis on premium feed-in tariffs and renewable energy target policy. Using econometric modelling, this study demonstrates that premium feed-in tariffs have a notable long-term impact on reducing carbon emissions, albeit there are difficulties in the short run. On the contrary, the renewable energy target policy regularly demonstrates efficacy in both the short and long run. In addition, external factors, including the China-Australia trade dispute and COVID-19 disruptions, introduce heterogeneity in the outcomes of these policies by influencing supply chains and international collaborations related to renewable energy technologies. The aforementioned findings provide valuable insights for policymakers, underscoring the importance of developing well-thought-out policies that strike a balance between short-term advantages and long-term environmental advantages. This study highlights the significant contribution of effectively designed rebates for renewable energy in Australia's pursuit of a more environmentally conscious future, emphasising the importance of such incentives in promoting ecological integrity and ensuring enduring viability.