The impacts of greenhouse gas abatement policies on the predominantly grazing systems of South-western Australia
AbstractThree policy options for greenhouse gas abatement in the predominantly grazing systems of Western Australia are analysed. The two taxation policies (a tax on total emissions, and a tax on methane emissions only) are only effective at extreme tax rates ($85/t CO2 equivalents)where farming systems are no longer economically viable. The third policy option, emission restrictions, allows farms to remain profitable at approximately four times greater abatement levels than the taxation policies, and is found to be the most effective and efficient policy option studied. However, it is concluded that the introduction of any farm-level policy for greenhouse gas abatement would be politically unpopular and, in the absence of swift and innovative technological change, would cause the current farming systems to fail and be replaced by alternative land-uses.
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Bibliographic InfoPaper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec02-9.
Length: 23 pages
Date of creation: 2002
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- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-12-12 (All new papers)
- NEP-ENV-2004-12-12 (Environmental Economics)
- NEP-PBE-2004-12-12 (Public Economics)
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