Between Conflict and Cooperation: How federalism shapes Australian climate mitigation policy

Abstract

This thesis examines how federalism shapes emissions reduction policy in the Australian electricity sector. Australian federalism is an inherently multi-level system of governance where roles and responsibilities are divided across multiple actors. This presents opportunities and challenges in dealing with climate change. It has led to a complex policy landscape of interdependent and independent emissions reduction polices at the federal and subnational level. This paper situates Australian federalism within the growing body of literature on polycentric and multi-level approaches to climate governance that claim normative superiority over unitary forms of governance. Equally, the presence of multiple actors presents coordination challenges if cooperation is not present or interests are not aligned. This thesis asks; How is Australian federalism impacting effective emissions reduction in the electricity sector? This thesis uses the Renewable Energy Target (RET) as a case study to examine the interplay between federal and subnational policy action. Comparative analysis of the federal, Australian Capital Territory (ACT) and New South Wales (NSW) approaches to the RET is conducted observing vertical and horizontal interactions. Data collected from the policy review and semi-structured interviews is analysed using orienting concepts identified in the literature review and Head’s three lenses of evidence based policy. Research findings suggest that federal, ACT and NSW RET policies have developed in relation to one another overtime. Vertical and horizontal policy interactions are primarily determined by intergovernmental relations however in the absence of federal leadership, subnational actors will act in their own best interest to ‘fill the void’. The presence of federal and subnational actors allows for top-down, bottom up and side-ways influence presenting opportunity for increased experimentation, learning, flexibility and adaptability. Experimentation and policy learning is observed at the subnational level suggesting that if actors cannot look up for direction they can look sideways. Further, intergovernmental relations are found to be dynamic; conflict, competition, and cooperation are not mutually exclusive and exist concurrently along vertical and horizontal lines. This thesis identifies political party identity as a key determinant of cooperation versus conflict in the Australian context. This novel factor has largely been overlooked in literature on multi-level governance thus far. It is found that differing political party dominance at the federal and subnational level can lead to competitive collective subnational action, giving rise to potential bottom-up influence. Conversely, in situations where political parties align at both levels, cooperation is more likely. This thesis highlights subnational actors as key players and a collective source of power in achieving emissions reduction in the Australian electricity sector. Show more