The efficacy of the Australian carbon pricing scheme

The Australian carbon pricing scheme, based on a cap and trade system, has divided the main political parties and the community. Australia has a target to reduce greenhouse gas emissions by five per cent below 2000 levels by 2020. But the parties are divided on the best policy to achieve this target. The issue will have a high profile in the run up to the federal election which takes place next month.

This paper from Frontier (Australia) examines some facts around the likely effectiveness of the Australian Government’s carbon pricing scheme, in terms of its contribution towards reducing greenhouse gas emissions. Frontier finds that the Australian Government’s carbon price is likely to result in only a small reduction in electricity sector greenhouse gas emissions, and considerably less than expected in 2011.

For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com or call on +61 (0)3 9620 4488.

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