IDEAS home Printed from https://ideas.repec.org/p/ags/ancewp/249538.html
   My bibliography  Save this paper

Fulfilling Australia’s International Climate Finance Commitments: Which Sources of Financing are Promising and How Much Could They Raise?

Author

Listed:
  • Jotzo, Frank
  • Pickering, Jonathan
  • Wood, Peter J.

Abstract

Developed countries have pledged to mobilise $100 billion per year by 2020 for climate change action in developing countries. Progress on financing is necessary to ensure broader progress on climate change cooperation. Supporting the global commitment is in Australia’s interests, since climate finance can harness low-cost mitigation opportunities and help vulnerable countries in the Asia-Pacific region adapt to climate change. Based on Australia’s wealth and emissions, we find that a fair share for Australia may be around 2.4 per cent, or $2.4 billion a year by 2020. We analyse possible sources of finance in Australia. Carbon markets could provide large financial flows but their shortterm prospects are uncertain, and additional public finance is needed in any event. While Australia currently draws its climate finance from a growing aid budget, a large scale-up of climate change aid could raise concerns that aid is being diverted from existing development priorities. A carbon levy on international transport could provide considerable revenue and could be implemented unilaterally ahead of a global scheme. Reducing tax breaks for fossil fuel using and producing activities could raise revenue well in excess of Australia’s total climate finance commitment, while improving economic efficiency and cutting carbon emissions. Further, Australia’s exports of coal and other resources provide a very large tax base which could be tapped to a greater extent.

Suggested Citation

  • Jotzo, Frank & Pickering, Jonathan & Wood, Peter J., 2011. "Fulfilling Australia’s International Climate Finance Commitments: Which Sources of Financing are Promising and How Much Could They Raise?," Working Papers 249538, Australian National University, Centre for Climate Economics & Policy.
  • Handle: RePEc:ags:ancewp:249538
    DOI: 10.22004/ag.econ.249538
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/249538/files/CCEP1115Jotzo.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.249538?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387, December.
    2. Jan von der Goltz, 2009. "High Stakes in a Complex Game: A Snapshot of the Climate Change Negotiating Positions of Major Developing Country Emitters," Working Papers 177, Center for Global Development.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Cutting subsidies to fossil fuels could help Australia meet its financial climate commitments
      by Jonathan Pickering, PhD Scholar, College of Arts and Social Sciences at Australian National University in The Conversation on 2011-10-27 05:20:41
    2. Climate finance at Doha: what’s the damage?
      by Frank Jotzo and Jonathan Pickering in Development Policy Blog on 2012-12-12 02:00:40
    3. CCEP Working Papers in October 2011
      by David Stern in Stochastic Trend on 2011-11-02 13:05:00
    4. Will an incoming government boost Australia’s climate aid?
      by Jonathan Pickering and Paul Mitchell in Development Policy Blog on 2016-06-27 01:00:40

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pickering, Jonathan & Skovgaard, Jakob & Kim, Soyeun & Roberts, J. Timmons & Rossati, David & Stadelmann, Martin & Reich, Hendrikje, 2015. "Acting on Climate Finance Pledges: Inter-Agency Dynamics and Relationships with Aid in Contributor States," World Development, Elsevier, vol. 68(C), pages 149-162.
    2. Mutsuyoshi Nishimura & Akinobu Yasumoto, 2011. "In Search of a New Effective International Climate Framework for Post-2020: A Proposal for an Upstream Global Carbon Market," CCEP Working Papers 1117, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    3. Jonathan Pickering & Frank Jotzo & Peter J. Wood, 2015. "Splitting the Difference: Can Limited Coordination Achieve a Fair Distribution of the Global Climate Financing Effort?," CCEP Working Papers 1504, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    4. Nishimura, Mutsuyoshi & Yasumoto, Akinobu, 2011. "In Search of a New Effective International Climate Framework for Post-2020: A Proposal for an Upstream Global Carbon Market," Working Papers 249540, Australian National University, Centre for Climate Economics & Policy.
    5. Jonathan Pickering & Paul Mitchell, 2017. "What drives national support for multilateral climate finance? International and domestic influences on Australia’s shifting stance," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(1), pages 107-125, February.
    6. Luis Abadie & Ibon Galarraga & Dirk Rübbelke, 2013. "An analysis of the causes of the mitigation bias in international climate finance," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(7), pages 943-955, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Das Gupta, Monica & Bongaarts, John & Cleland, John, 2011. "Population, poverty, and sustainable development : a review of the evidence," Policy Research Working Paper Series 5719, The World Bank.
    2. Johan Eyckmans & Sam Fankhauser & Snorre Kverndokk, 2016. "Development Aid and Climate Finance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 429-450, February.
    3. Ahmet Faruk Aysan & …mer Faruk Baykal & Marie-Ange Véganzonès–Varoudakis, 2011. "The Effects of Convergence in Governance on Capital Accumulation in the Black Sea Economic Cooperation Countries," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 6, Edward Elgar Publishing.
    4. van de Walle, Dominique, 2011. "Lasting welfare effects of widowhood in a poor country," Policy Research Working Paper Series 5734, The World Bank.
    5. Tom Coupe & Anna Olefir & Juan Diego Alonso, 2011. "Is Optimization an Opportunity? An Assessment of the Impact of Class Size and School Size on the Performance of Ukrainian Secondary Schools," Discussion Papers 44, Kyiv School of Economics.
    6. Independent Evaluation Group, 2016. "Program-for-Results," World Bank Publications - Books, The World Bank Group, number 25770, December.
    7. Güzin Bayar, 2022. "Turkey's sectoral exports: A competitiveness approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2268-2289, April.
    8. Blattman, Christopher & Fiala, Nathan & Martinez, Sebastian, 2011. "Employment generation in rural Africa : mid-term results from an experimental evaluation of the Youth Opportunities Program in Northern Uganda," Social Protection Discussion Papers and Notes 66523, The World Bank.
    9. Calvin Atewamba & Edward R Rhodes, 2020. "Biophysical and Economic Factors of Climate Change Impact Chain in the Agriculture Sector of ECOWAS," Chapters, in: Abdelhadi Makan (ed.), Environmental Health - Management and Prevention Practices, IntechOpen.
    10. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    11. Narita, Daiju, 2010. "Climate policy, technology choice, and multiple equilibria in a developing economy," Kiel Working Papers 1590, Kiel Institute for the World Economy (IfW Kiel).
    12. Mohan, Rakesh, 2011. "Emerging Contours of Financial Regulation: Challenges and Dynamics," ADBI Working Papers 271, Asian Development Bank Institute.
    13. Meltem Dayioğlu & Sirma Demir Şeker, 2016. "Social Policy and the Dynamics of Early Childhood Poverty in Turkey," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 17(4), pages 540-557, October.
    14. Fernández-Huertas Moraga, Jesús & Rapoport, Hillel, 2014. "Tradable immigration quotas," Journal of Public Economics, Elsevier, vol. 115(C), pages 94-108.
    15. Rabah Arezki & Markus Brückner, 2011. "Food Prices and Political Instability," CESifo Working Paper Series 3544, CESifo.
    16. Richard E. Stren, 2012. "Donor Assistance and Urban Service Delivery in Africa," WIDER Working Paper Series wp-2012-049, World Institute for Development Economic Research (UNU-WIDER).
    17. Ciaran O'Faircheallaigh, 2013. "Community development agreements in the mining industry: an emerging global phenomenon," Community Development, Taylor & Francis Journals, vol. 44(2), pages 222-238, May.
    18. Portner, Claus C & Beegle, Kathleen & Christiaensen, Luc, 2011. "Family planning and fertility : estimating program effects using cross-sectional data," Policy Research Working Paper Series 5812, The World Bank.
    19. Chen, Y.-H. Henry & Timilsina, Govinda R., 2012. "Economic implications of reducing carbon emissions from energy use and industrial processes in Brazil," Policy Research Working Paper Series 6135, The World Bank.
    20. Mahtta, Richa & Joshi, P.K. & Jindal, Alok Kumar, 2014. "Solar power potential mapping in India using remote sensing inputs and environmental parameters," Renewable Energy, Elsevier, vol. 71(C), pages 255-262.

    More about this item

    Keywords

    Environmental Economics and Policy; Financial Economics;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ancewp:249538. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/creauau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/creauau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.