An Emissions Trading Scheme for Australia: National and Regional Impacts

29 Pages Posted: 23 Sep 2014

See all articles by Philip D. Adams

Philip D. Adams

Victoria University - Centre of Policy Studies

Brian R. Parmenter

Monash University - Department of Economics

George Verikios

Monash University - Centre of Policy Studies

Date Written: September 2014

Abstract

Computable general equilibrium modelling in Australia is oriented towards providing inputs to the policy‐formation process, a process that requires detail. We explain how the necessary level of detail can be provided using analysis of the potential economic impacts of a carbon price on the Australian economy that operates as part of a global emissions trading scheme. The global scheme sets the price and allocation of permits across countries. We find that domestic abatement falls well short of targeted abatement, Australia's GDP is 1.1 per cent lower relative to the basecase, and some industries and regions are vulnerable to employment losses.

Suggested Citation

Adams, Philip D. and Parmenter, Brian R. and Verikios, George, An Emissions Trading Scheme for Australia: National and Regional Impacts (September 2014). Economic Record, Vol. 90, Issue 290, pp. 316-344, 2014. Available at SSRN: https://ssrn.com/abstract=2499911 or http://dx.doi.org/10.1111/1475-4932.12117

Philip D. Adams (Contact Author)

Victoria University - Centre of Policy Studies ( email )

Melbourne, Victoria
Australia

Brian R. Parmenter

Monash University - Department of Economics ( email )

Wellington Road
Centre of Policy Studies
Clayton, Victoria 3
Australia
+61 3 990 52460 (Phone)
+61 3 9904 2426 (Fax)

George Verikios

Monash University - Centre of Policy Studies ( email )

Clayton, Vic 3800
Australia

HOME PAGE: http://www.monash.edu.au/policy/

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
156
PlumX Metrics