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Carbon Taxation, Fuel Substitution and Welfare in Australia

Author

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  • John Creedy
  • Cameron Martin

Abstract

This paper investigates the implications for Australian households of a carbon tax, using the input-output approach developed by Simons et al. (1994) and adapted by Cornwell and Creedy (1997). In these studies the carbon dioxyde reduction is generated by demand changes resulting from the differential price changes arising from a carbon tax. The present peaper incorporates substitution between fuels in the electricity generating sector, which is the largest single contributor to the Enhanced Greenhouse Effect.
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Suggested Citation

  • John Creedy & Cameron Martin, 2000. "Carbon Taxation, Fuel Substitution and Welfare in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(1), pages 32-48.
  • Handle: RePEc:bla:ausecr:v:33:y:2000:i:1:p:32-48
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1467-8462.00134
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    Cited by:

    1. Creedy, John & Sleeman, Catherine, 2006. "Carbon taxation, prices and welfare in New Zealand," Ecological Economics, Elsevier, vol. 57(3), pages 333-345, May.

    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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