Clean Technology, Regulation and Government Intervention: The Australian Experience

31 Pages Posted: 17 Mar 2016 Last revised: 22 Feb 2017

See all articles by Sasan Bakhtiari

Sasan Bakhtiari

Australian Department of Industry; Crawford School, ANU

Date Written: February 10, 2017


This study assesses the impact of an Australian carbon pricing scheme and a related grant program on the manufacturing industry. A production function approach is used to isolate and examine the portion of emission change linked to technological shift. It also tests whether exposure to facilities that receive the grant encourages the adoption of clean technology elsewhere. Coinciding with the carbon pricing scheme, there is about 10 per cent reduction in emissions due to a sector-wide shift to cleaner technologies. The effect of the grant program is size dependent, and small and very large facilities mainly invested to reduce emission intensity beyond the average. The exposure to the program mostly affects firms where production is geographically concentrated.

Keywords: Energy, Emissions Trading, Clean Technology, Technology Adoption, Climate Change, Public Policy

JEL Classification: D22, H23, L6, Q54

Suggested Citation

Bakhtiari, Sasan, Clean Technology, Regulation and Government Intervention: The Australian Experience (February 10, 2017). Available at SSRN: or

Sasan Bakhtiari (Contact Author)

Australian Department of Industry ( email )

341 George Street
Sydney, NSW 2000


Crawford School, ANU ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200


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