IDEAS home Printed from
   My bibliography  Save this paper

Low hanging fruit in Australia's climate policy


  • Frank Jotzo
  • Warwick J. McKibbin


Australia has a history of fragmented and politically contested climate policy, and current climate policy is both piecemeal and limited in scope and ambition. Ample opportunities exist to reduce emissions through the more broad-based application of policy. This paper outlines six areas where climate policy in Australia could achieve emissions reductions at low cost: pricing emissions in industry through a modification and broadening of the existing Safeguards Mechanism; investment in assisting the transformation of the electricity grid to very high shares of renewables; a mixture of innovation support, and targeted incentives and regulatory standards in specific sectors and activities; an effective green infrastructure program to stimulate demand and raise productivity in the medium term; a community focussed structural adjustment fund that would enable disproportionately impacted communities to adapt reality of the global transition to net-zero emissions by 2050; and removing impediments to the emergence of new renewable energy-based export industries to take the place of coal and gas exports.

Suggested Citation

  • Frank Jotzo & Warwick J. McKibbin, 2021. "Low hanging fruit in Australia's climate policy," CAMA Working Papers 2021-78, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:camaaa:2021-78

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    climate change policy; policy packages; Australia;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:een:camaaa:2021-78. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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: Cama Admin (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.