The recent announcement that the Hazelwood power station will close is likely a win for the climate, but presents challenges for workers and the region in transitioning to new employment and industries.

Governments have a patchy track record in terms of delivering beneficial outcomes through structural adjustment packages. The packages announced by the Victorian and Commonwealth Governments will need to be well designed and mindful of past mistakes if they are to be successful.

More broadly there is a need to consider what assistance can and should be provided as the energy sector transitions, and be proactive in preparing. Past efforts to address structural adjustment such as those reviewed in Aither's 2012 review provide an indication of potential pathways to ease adjustments while allowing markets to do what they should.

https://rirdc.infoservices.com.au/items/15-110