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Coming Out Clean: Australian Carbon Pricing and Clean Technology Adoption

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  • Bakhtiari, Sasan

Abstract

Australia implemented a carbon pricing scheme from July 2012 to July 2014 to reduce emissions. Using data envelopment analysis, I investigate whether the uptake of clean technology accelerated during this period. I also explore a few other related strategies firms used to reduce emissions. I find that during the scheme firms accelerated the adoption of cleaner technology. Much of this acceleration came from firms lagging in technology catching up with the frontier. Reallocation of operation towards cleaner facilities and opting for more efficient scale sizes also helped the pace of emissions reduction. The pattern shows some variation from industry to industry. All these activities subside as soon as the carbon pricing is repealed.

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  • Bakhtiari, Sasan, 2018. "Coming Out Clean: Australian Carbon Pricing and Clean Technology Adoption," Ecological Economics, Elsevier, vol. 154(C), pages 238-246.
    • Handle: RePEc:eee:ecolec:v:154:y:2018:i:c:p:238-246
    DOI: 10.1016/j.ecolecon.2018.08.004
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    Cited by:

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    More about this item

    Keywords

    Carbon tax; Energy; Clean technology; Malmquist index; Resource reallocation; Public policy;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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