The Grattan Institute's 2018 report into how the states are going also recommends state governments pursue their own emissions reduction scheme if the federal government can't create one.

The report found the amount of housing per adult in each state went backwards from 2011 to 2016, with only the ACT increasing its housing stock.

"Affordability - both to buy and to rent - will only get a lot better if governments ensure more homes are built," the report says.

The institute recommends state governments put more high density housing in inner suburbs close to CBDs, where most of the high value jobs are created.

"Building an extra 50,000 homes a year for a decade could leave Australian house prices five-to-20 per cent lower than what they would have been otherwise, stem rising public anxiety about housing affordability, and increase economic growth."

The report also says the NSW, Queensland and Tasmanian governments should write down the value of the energy networks they own and also refund customers for gold-plating them.

"State governments should pursue a nation wide state-based emissions reduction scheme unless the Commonwealth government develops a credible national emissions reduction policy," the report says.

But the institute is critical of Victoria's move to subsidise rooftop solar schemes.

Public transport prices should be varied to the time of day, spreading out demand for services, and the report also recommends extending it to roads.

"The NSW and Victorian governments should introduce time-of-day congestion pricing in the most congested central areas of Sydney and Melbourne, charging at peak periods to enable freer-flowing roads," the report says.

Australian Associated Press