IDEAS home Printed from https://ideas.repec.org/p/een/ccepwp/1112.html
   My bibliography  Save this paper

Australia's Carbon Pricing Strategies in a Global Context

Author

Listed:
  • Harry Clarke

    () (School of Economics and Finance, La Trobe University, Melbourne)

  • Robert Waschik

    () (School of Economics and Finance, La Trobe University, Melbourne)

Abstract

The impact of international carbon control measures - and the absence of such measures - on Australian carbon pricing policies are analyzed both at a theoretical and empirical level. While theory and interest group advocacy suggest a potential case for destination accounting of carbon emissions and border tax adjustments and/or export exemptions, this case is sometimes exaggerated. For example, in the ferrous metals sector, empirical analysis suggests that gains from such refinements are low since carbon leakages and adverse competitiveness effects are small. In other sectors - such as non-ferrous metals - the effects are more pronounced. Exaggerating the competitiveness costs of carbon pricing runs the risk of policy overreaction and unintended protectionism, dramatically increasing the costs of Australian carbon pricing policies. Providing free and tradable emission quotas to exporters and import competing sectors is a 'second best' policy but one with practicality in sectors where adverse competitiveness effects do need to be addressed.

Suggested Citation

  • Harry Clarke & Robert Waschik, 2011. "Australia's Carbon Pricing Strategies in a Global Context," CCEP Working Papers 1112, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:ccepwp:1112
    as

    Download full text from publisher

    File URL: http://ccep.anu.edu.au/data/2011/pdf/wpapers/CCEP1112Clarke.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. New CCEP Working Papers
      by David Stern in Stochastic Trend on 2011-09-28 14:49:00

    Citations

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


    Cited by:

    1. Fraser, Iain & Waschik, Robert, 2013. "The Double Dividend hypothesis in a CGE model: Specific factors and the carbon base," Energy Economics, Elsevier, vol. 39(C), pages 283-295.
    2. repec:eee:eneeco:v:69:y:2018:i:c:p:213-224 is not listed on IDEAS
    3. Harry Clarke & Iain Fraser & Robert George Waschik, 2014. "How Much Abatement Will Australia's Emissions Reduction Fund Buy?," Economic Papers, The Economic Society of Australia, vol. 33(4), pages 315-326, December.
    4. repec:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0091-x is not listed on IDEAS
    5. Svetlana Maslyuk & Dinusha Dharmaratna, 2012. "Impact of Shocks on Australian Coal Mining," Monash Economics Working Papers 37-12, Monash University, Department of Economics.

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:een:ccepwp:1112. 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: (David Stern). General contact details of provider: http://edirc.repec.org/data/asanuau.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.

    We have no 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.

    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.