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An Experimental Economic Analysis of Carbon Trading Options for Australia

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  • Tisdell, John G.
  • Grainger, Corinne

Abstract

Australia is currently developing a carbon emissions trading program. The Garnaut report recommendations include options for the allocation of carbon credits, trading schemes, banking and borrowing, and self reporting mechanisms. This paper reports the results of a series of economic experiments in which we explored spot and future markets given high and low levels of carbon credit reductions. The results provide important insights to the current debate in Australia and highlight the importance of well crafted market design.

Suggested Citation

  • Tisdell, John G. & Grainger, Corinne, 2009. "An Experimental Economic Analysis of Carbon Trading Options for Australia," 2009 Conference, August 16-22, 2009, Beijing, China 51044, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51044
    DOI: 10.22004/ag.econ.51044
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    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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