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In a September 2010 media release the Prime Minister of Australia presented the terms of reference for the newly established Multi-Party Climate Change Committee. Although the Committee is charged with considering climate change mitigation measures in general, specifically the Committee must consider an appropriate mechanism for the establishment of a carbon price. The purpose of this article is to provide an overview of the mechanisms to be considered by the Climate Change Committee, including the use of emissions trading and carbon levies in other jurisdictions. This article argues that for any effective investigation of a carbon price for Australia to occur, a thorough knowledge of other jurisdictions’ methods for carbon pricing is essential.

The carbon tax in Australia, which is implemented from 1 July 2012, has become a controversial issue to the policy makers and people regarding its potential effects on the economy and society. Therefore, this paper analyses the various effects of the carbon tax with particular attention to Australian income distribution, employment and international competitiveness. The carbon tax will increase the inequality between the poor and the rich, as the poor will be adversely affected because of increased price of almost all essential items even in the presence of the government support program; regional disparity is also likely to increase. Employment will be reduced especially in coal, mining, steel, automotive and other manufacturing industries which will cause the shrinkage of GDP. The international competitiveness of Australian industries will also be reduced, as these industries will suffer because of higher production cost compared to foreign competitors. Some policy options such as reduction of goods and services tax (GST), a tax free allowance for essential use of energy, a lower carbon tax rate, border tax adjustments, permanent financial support to the poor may be considered to reduce the regressive effects.

While studies have theoretically discussed the impact of carbon pricing on renewable energy, the practical implementation and effectiveness of these policies remain uncertain. This study empirically examines the role of carbon emissions trading and carbon tax in global renewable energy development using panel data from 196 countries and regions and employing the staggered difference-in-differences (DID) model and Bacon decomposition method. The results suggest that: (1) From the perspective of policy shocks, carbon trading has increased non-hydro renewable electricity generation by 73.32%, while carbon tax has increased it by 31.79%. This indicates that the overall impact of carbon trading on renewable energy is greater than that of carbon tax. However, the elasticity coefficients of renewable energy to carbon trading prices and carbon tax rates are 0.1801 and 0.1845, respectively, suggesting a slightly greater marginal effect of carbon tax on renewable energy compared to carbon trading. (2) Both carbon tax and carbon trading have mitigated the growth of fossil electricity and encouraged public investment in renewable energy, thereby fostering its development. (3) The influence of carbon pricing on renewable energy varies by income level; notably, the implementation of these policies in high-income countries has diminished their promotional effect on renewable energy. (4) The contribution of technological innovation to renewable energy development is smaller than that of policies including carbon trading and carbon tax, indicating that renewable energy development during the sample period was predominantly driven by policy measures. The findings indicate that the application of carbon pricing policies should be further promoted to accelerate the energy mix transition.

The proposed carbon tax in Australia, which is scheduled to be implemented from 1 July 2012, has become a controversial issue to the policy makers and people regarding its potential effects on the economy and society. Therefore, this paper analyses the various effects of the carbon tax with particular attention on Australian income distribution, employment and international competitiveness. The carbon tax will increase the inequality between the poor and the rich, as the poor will be adversely affected because of increased price of almost all essential items even in the presence of the government support program; regional disparity is also likely to increase. Employment will be reduced especially in coal, mining, steel, automotive and other manufacturing industries which will cause the shrinkage of GDP. The international competitiveness of Australian industries will also be reduced, as these industries will suffer because of higher production cost compared to foreign competitors. Some policy options such as reduction of VAT, a tax free allowance for essential use of energy, a lower carbon tax rate, border tax adjustments, permanent financial support to the poor may be considered to reduce the regressive effects.

A rule for setting a tax on carbon emissions to limit their atmospheric stock to a predetermined level is developed for a world inhabited by uncoordinated, myopic, expected utility maximizing agents. In all locations, the mean of the marginal product of the carbon emitting input diminishes and the variance increases as climate deteriorates. The rule is illustrated for a world divided into poor countries and rich countries. The poor countries’ costs of non-compliance with the tax, in terms of per capita utility loss from diminished reputation, are negligible. The rich countries' costs of non-compliance and, consequently, inclination to pay the globally set tax can be substantial but not identical. The number of complying rich countries decreases with the tax level, but at a rate that is moderated by the range of the rich countries’ loss of per capita utility from abstinence.

Amid the urgent global imperatives concerning climate change and resource preservation, our research delves into the critical domains of waste management and environmental sustainability within the European Union (EU), collecting data from 1990 to 2022. The Method of Moments Quantile Regression (MMQR) results reveal a resounding commitment among EU member states to diminish their reliance on incineration, which is evident through adopting green technologies and environmentally conscious taxation policies, aligning with the European Union's sustainability objectives. However, this transition presents the intricate task of harmonizing industrial emissions management with efficient waste disposal. Tailoring waste management strategies to accommodate diverse consumption patterns and unique circumstances within individual member states becomes imperative. Cointegrating regressions highlighted the long-run relationship among the selected variables, while Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE) estimates roughly confirmed MMQR results. ML analyses, conducted through two ensemble methods (Gradient Boosting, GB, and Extreme Gradient Boosting, XGBoost) shed light on the relative importance of the predictors: in particular, environmental taxation, consumption-based emissions, and production-based emissions greatly contribute to determining the variation of combustible renewables and waste. This study recommends that EU countries establish monitoring mechanisms to advance waste management and environmental sustainability through green technology adoption, enhance environmental taxation policies, and accelerate the renewable energy transition.

As the world largest carbon dioxide (CO2) emitter, China is under pressure to develop policies to mitigate carbon emissions, with market-based approaches under consideration. Emissions trading is theoretically the most efficient approach but some countries are starting with carbon/energy taxes. This research examines these two options through literature and practice in order to evaluate which might be most suitable for China and then to estimate the major economic impacts of the selected option. The thesis first looks at the limited cases of emissions trading, with a particular focus, using official reports and data and interviews, on the example of SO2 control in Taiyuan city. It is found that the Taiyuan SO2 emissions trading program does not seem to be functioning anything like the ideal emissions trading model and cannot be judged as a successful scheme in terms of emissions reductions, cost savings, innovation and investment in clean energy, and investment leakage. When combined with concerns about the limited development of truly free markets and the weak law basis in China, it is concluded that emissions trading may not be the best policy option at this stage and that a carbon tax might be the most practical interim measure. Next, the impacts of a carbon tax are considered through a computable general equilibrium (CGE) model for China. The simulation results show that overall the introduction of a carbon tax will have a negative impact on the economy, but this negative impact is relatively gentle if considered against the emissions reductions. After a carbon tax is imposed, carbon intensive sectors will suffer most seriously and there will be a shift away from high-carbon factors toward low-carbon or non-carbon factors. Moreover, the adverse effects of the tax on economy could be relieved to some extent by subsidizing households, through transfers of the tax revenue. From the experience of Australia, China could also use carbon tax as a transitional policy and then move to carbon emissions trading system ...

This thesis is a study of whether the Australian Clean Energy Package complies with the rules of the World Trade Organization. It examines the legal framework for the Australian carbon pricing mechanism and related arrangements, using World Trade Organization law as the framework for analysis. In doing so, this thesis deconstructs the Clean Energy Package by considering the legal properties of eligible emissions units, the assistance measures introduced by the Package and the liabilities created by the carbon pricing mechanism.

China has established a nationwide carbon quota trading market. Drawing upon international experiences and the strategic vision of the Chinese government, it is anticipated that China will soon incorporate a carbon tax system. The futurescape envisions a parallel progression of both the carbon market and the carbon tax system. This prompts an exploration into the circumstances where one should prioritize the carbon market system over the other, and vice versa. This paper constructs a repeated oligopoly game model to juxtapose equilibrium points under both carbon trading and tax regimes. Through rigorous analysis, it is discerned that under a duopoly with bounded rationality and inelastic pricing, if the carbon tax is set referencing the clearing price of the carbon market, then both the carbon trading and tax regimes can achieve identical emission reduction outcomes. Stemming from this revelation, for regions with established inelastic, oligopolistic carbon markets, it would be prudent to manage emission sources not included in the carbon market by setting a carbon tax in line with the market's clearing emission price. Furthermore, measures might be considered to dismantle such oligopolistic dominance to enhance emission reduction efficiency, or to transition from the carbon market to a tax regime for cost-efficient administration. For regions yet to embrace a carbon pricing mechanism, if there's an anticipation of forming an oligopolistic and inelastic carbon market, given the lower administrative costs, diminished enterprise operational risks, and broader coverage of the carbon tax regime, the region should gravitate towards the carbon tax system as a priority.