Beyond the illusion of rationality: Alan Pears on fixing Australia’s energy system

Alan Pears has been helping shape Australia’s sustainable energy policies since the late 1970s. He’s a Senior Industry Fellow at RMIT University and one of Australia’s pre-eminent energy efficiency experts and environmental consultants and has advised federal, state and local governments across Australia, as well as community groups and the private sector. Alan has played a pivotal role in the development of efficient energy appliances, green buildings, energy labels for electric appliances, and mandatory home insulation regulations. In a recent submission to the electricity pricing review now being conducted by the Australian Energy Market Commission he argues there are some basic flaws in our energy system that urgently need fixing: the system is constrained by 'bounded rationality'—narrow thinking and understanding—and it’s time energy networks and retailers shoulder more risk, not consumers.