Carbon Taxation, Fuel Substitution and Welfare in Australia
This paper investigates the implications for Australian households of a carbon tax, using the input-output approach developed by Simons et al. (1994) and adapted by Cornwell and Creedy (1997). In these studies the carbon dioxyde reduction is generated by demand changes resulting from the differential price changes arising from a carbon tax. The present peaper incorporates substitution between fuels in the electricity generating sector, which is the largest single contributor to the Enhanced Greenhouse Effect.
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