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The impacts of greenhouse gas abatement policies on the predominantly grazing systems of South-western Australia


  • Elizabeth H. Petersen
  • Steven Schilizzi
  • David Bennett


Three policy options for greenhouse gas abatement in the predominantly grazing systems of Western Australia are analysed. The two taxation policies (a tax on total emissions, and a tax on methane emissions only) are only effective at extreme tax rates ($85/t CO2 equivalents)where farming systems are no longer economically viable. The third policy option, emission restrictions, allows farms to remain profitable at approximately four times greater abatement levels than the taxation policies, and is found to be the most effective and efficient policy option studied. However, it is concluded that the introduction of any farm-level policy for greenhouse gas abatement would be politically unpopular and, in the absence of swift and innovative technological change, would cause the current farming systems to fail and be replaced by alternative land-uses.

Suggested Citation

  • Elizabeth H. Petersen & Steven Schilizzi & David Bennett, 2002. "The impacts of greenhouse gas abatement policies on the predominantly grazing systems of South-western Australia," International and Development Economics Working Papers idec02-9, International and Development Economics.
  • Handle: RePEc:idc:wpaper:idec02-9

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    References listed on IDEAS

    1. Marsh, Sally P. & Pannell, David J., 2000. "Agricultural extension policy in Australia: the good, the bad, and the misguided," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), December.
    2. Schmidt, Carmel P & Pannell, David J, 1996. "Economic Issues in Management of Herbicide-Resistant Weeds," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(03), December.
    3. Morrison, David A. & Kingwell, Ross S. & Pannell, David J. & Ewing, Michael A., 1986. "A mathematical programming model of a crop-livestock farm system," Agricultural Systems, Elsevier, vol. 20(4), pages 243-268.
    4. Pannell, David J. & Malcolm, Bill & Kingwell, Ross S., 2000. "Are we risking too much? Perspectives on risk in farm modelling," Agricultural Economics, Blackwell, vol. 23(1), pages 69-78, June.
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    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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