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Modelling as Agit-prop: The Treasury's Role in Australia's Carbon Tax Debate

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  • Henry Ergas
  • Alex Robson

Abstract

This paper examines the modelling undertaken by the Commonwealth Treasury of the costs of an Australian emissions trading scheme, published in 'Strong Growth, Low Pollution'. Despite its considerable technical sophistication, we argue that this modelling is primarily an exercise in propaganda: 'the systematic dissemination of selected information to promote a particular doctrine' (Oxford English Dictionary). That propaganda role determined the limited range of questions asked in the modelling, the myriad unrealistic assumptions made in answering those questions, and the limitations imposed on third-party access to the model and data.

Suggested Citation

  • Henry Ergas & Alex Robson, 2012. "Modelling as Agit-prop: The Treasury's Role in Australia's Carbon Tax Debate," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 19(2), pages 9-22.
    • Handle: RePEc:acb:agenda:v:19:y:2012:i:2:p:9-22
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    File URL: http://press-files.anu.edu.au/downloads/press/p208901/pdf/ch026.pdf
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    References listed on IDEAS

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    1. Skaperdas, Stergios & Syropoulos, Constantinos, 1996. "Can the shadow of the future harm cooperation?," Journal of Economic Behavior & Organization, Elsevier, vol. 29(3), pages 355-372, May.
    2. José A. Rodrigues-Neto, 2008. "Climate Change Policy: A Theorist’s Plea to Take Heed of Game Theory and Ambiguity Aversion," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 15(2), pages 85-92.
    3. Henry Ergas, 2012. "Policy Forum: Designing a Carbon Price Policy: Using Market‐Based Mechanisms for Emission Abatement: Are the Assumptions Plausible?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 45(1), pages 86-95, February.
    4. Alex Robson, 2007. "The Prime Ministerial Task Group on Emissions Trading: A Solution in Search of a Problem," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 14(3), pages 19-26.
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    Cited by:

    1. Alex Robson, 2014. "Australia's Carbon Tax: An Economic Evaluation," Economic Affairs, Wiley Blackwell, vol. 34(1), pages 35-45, February.

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