Australia’s Federal Government has announced the Productivity Commission will perform a study of emission and energy-reduction policies in key international economies to help with putting a price on carbon in Australia.
Given the range of policies, the impacts of various initiatives on a carbon price are not always clear. Effective carbon prices include both explicit carbon prices, such as taxes or emissions trading schemes, and implicit carbon prices.
The study will determine the effective carbon price of a range of policies including carbon taxes, emissions trading schemes, renewable energy targets and subsidies for low-emission technologies.
The Productivity Commission will determine the effective carbon price already adopted or planned by other nations including the United Kingdom, the United States, Germany, New Zealand, China, India, Japan and South Korea.
The Minister for Climate Change and Energy Efficiency, Greg Combet, says aside from gauging an effective carbon price,” It will also help to demonstrate the level of action that is already being taken by other countries around the world.”
“Countries around the world are taking action to reduce carbon pollution and an open trading nation like Australia can’t afford to be left behind. Australia needs to get started on introducing a carbon price to our economy,” said Deputy Prime Minister and Treasurer, Wayne Swan.
The study is part of the deal hammered out with the Member for New England, Tony Windsor, following this year’s Federal Election and will be funded to the tune of $2.6 million.
