Coming Out Clean: Australian Carbon Pricing and Clean Technology Adoption

25 Pages Posted: 21 Sep 2016 Last revised: 13 Feb 2018

See all articles by Sasan Bakhtiari

Sasan Bakhtiari

Australian Department of Industry; Crawford School, ANU

Date Written: February 12, 2018


Australia implemented a carbon pricing scheme from July 2012 to July 2014 to reduce emissions. Using data envelopment analysis, I investigate whether the uptake of clean technology accelerated during this period or whether firms opted for alternate responses. I find that during the scheme firms accelerated the adoption of cleaner technology. Much of this acceleration came from firms lagging in technology catching up with the frontier. Some laggard firms also resorted to reallocating operation to their cleaner facilities to avoid investing in clean technology. The pattern shows some variation from industry to industry. The rate of technology adoption falls as soon as the carbon pricing scheme is repealed.

Keywords: Emission Trading, Energy, Clean Technology, Malmquist Index, Resource Reallocation, Public Policy

JEL Classification: C43, D22, H23, Q54, Q58

Suggested Citation

Bakhtiari, Sasan, Coming Out Clean: Australian Carbon Pricing and Clean Technology Adoption (February 12, 2018). 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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