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Policy Forum: Designing a Carbon Price Policy : Empirical Uncertainties in Climate Policy Implementation
Author(s) -
Pearce David
Publication year - 2012
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.2011.00669.x
Subject(s) - subsidy , climate policy , carbon price , government (linguistics) , legislation , renewable energy , public economics , climate change mitigation , economics , carbon tax , climate change , environmental economics , energy policy , political science , engineering , ecology , linguistics , philosophy , electrical engineering , law , market economy , biology
Despite the passing of the carbon price legislation, implementation of climate policy must confront a number of challenges. These include the uncertain nature of benefits from the policy, uncertainty surrounding the cost of abatement within Australia, uncertainties about international action and challenges in the interaction between policy instruments (for example, between the carbon price and large subsidies to renewable energy). Each of these issues implies a substantial empirical challenge for the Australian Government and the independent agencies charged with implementation. Effort should be focused on increasing the knowledge base, rather than relying on simplified scenarios from a narrow range of economic models .