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The political economy of Australia’s climate change and clean energy legislation: lessons learned

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  • Spencer, Thomas
  • Carole-Anne, Senit
  • Anna, Drutschinin
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    Abstract

    In November 2011, Australia adopted a highly innovative, ambitious and comprehensive climate change policy, the Clean Energy Legislative Package(CELP). This outcome was not self-evident.The CELP embeds an innovative carbon pricing mechanism in a comprehensive and highly generous package of complementary measures designed to increase its public acceptability, and environmental and economic efficiency. It is combined with progressive income tax cuts, increases in government transfer payments, and measures to shield emissions and trade-intensive industry and promote investment in renewable energy, energy efficiency and R&D. In addition, the package contains innovative governance mechanisms to shield it from the vagaries of the political cycle, and increase the political and administrative costs of dismantling it. In all, these measures increase the CELP’s chances of survival and provide an example of policy innovation for other countries to follow, keeping in mind their particular national circumstances.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43669.

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    Date of creation: 2012
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    Handle: RePEc:pra:mprapa:43669

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    Keywords: Carbon pricing; political economy of climate policy; Australian climate policy;

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    1. Weitzman, Martin L, 1974. "Prices vs. Quantities," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 41(4), pages 477-91, October.
    2. Clinch, J. Peter & Dunne, Louise & Dresner, Simon, 2006. "Environmental and wider implications of political impediments to environmental tax reform," Energy Policy, Elsevier, Elsevier, vol. 34(8), pages 960-970, May.
    3. Kallbekken, Steffen & Kroll, Stephan & Cherry, Todd L., 2011. "Do you not like Pigou, or do you not understand him? Tax aversion and revenue recycling in the lab," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 53-64, July.
    4. Kallbekken, Steffen & Sælen, Håkon, 2011. "Public acceptance for environmental taxes: Self-interest, environmental and distributional concerns," Energy Policy, Elsevier, Elsevier, vol. 39(5), pages 2966-2973, May.
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