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The challenges of finding efficient policy measures to reduce Australia'’s agricultural greenhouse gas emissions

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  • Helen King

    (Fenner School of Environment and Society, The Australian National University, Australia)

Abstract

A comprehensive emissions trading scheme (ETS) is Australia'’s principal climate change policy instrument. There are undoubtedly benefits of full ETS coverage. However, if emissions that cannot be affordably, reasonably and accurately measured are included, these must be balanced against potential costs. This report explores why agriculture is different from other sectors. Agriculture’'s diffuse and diverse emissions are inherently difficult to measure. They also fluctuate in response to environmental factors such as climate and biophysical characteristics. It is problematic to include the agriculture sector in the ETS, at reasonable cost and with incentives for behaviour change at the emission source. This is because of the climate and biophysical characteristics combined with the scale of over 130,000 farm enterprises. Worse, the emphasis on including agricultural emissions in the ETS is a disincentive for early abatement action. Alternative abatement policies are considered in this report which concludes that a ‘carrot and stick’ approach, using a range of policy instruments, is the best way to deliver cost effective abatement for agriculture.

Suggested Citation

  • Helen King, 2008. "The challenges of finding efficient policy measures to reduce Australia'’s agricultural greenhouse gas emissions," Environmental Economics Research Hub Research Reports 0809, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:eenhrr:0809
    as

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    File URL: https://crawford.anu.edu.au/research_units/eerh/pdf/EERH_RR9.pdf
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    References listed on IDEAS

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    1. Pezzey, John C.V. & Jotzo, Frank & Quiggin, John C., 2008. "Fiddling while carbon burns: why climate policy needs pervasive emission pricing as well as technology promotion," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(01), pages 1-14.
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