by John.C.V.Pezzey, Salim Mazouz and Frank Jotzo
- We analyse the efficiency of the target and of the provisions to prevent carbon leakage in the Australian Government's Carbon Pollution Reduction Scheme (CPRS), as proposed in March 2009, and the nature and likely cause of changes to these features during 2008. The target range of 5-15% national emission cuts during 2000-2020 is weak, and on balance likely to increase the cost of mitigation in Australia in the long run. The free allocation of output-linked, tradable permits to Emissions-Intensive, Trade-Exposed (EITE) sectors was much higher than proposed earlier, and than shown to be needed to prevent carbon leakage.
Pezzey, J.C.V, S. Mazouz and F. Jotzo (2009). "The logic of collective action and Australia’s Climate Policy." EERH Research Report No.24, May 2009.
