The impacts of greenhouse gas abatement policies on the predominantly grazing systems of South-western Australia

Elizabeth H. Petersen, Steven Schilizzi and David Bennett

International and Development Economics Working Papers from International and Development Economics

Abstract: Three policy options for greenhouse gas abatement in the predominantly grazing systems of Western Australia are analysed. The two taxation policies (a tax on total emissions, and a tax on methane emissions only) are only effective at extreme tax rates ($85/t CO2 equivalents)where farming systems are no longer economically viable. The third policy option, emission restrictions, allows farms to remain profitable at approximately four times greater abatement levels than the taxation policies, and is found to be the most effective and efficient policy option studied. However, it is concluded that the introduction of any farm-level policy for greenhouse gas abatement would be politically unpopular and, in the absence of swift and innovative technological change, would cause the current farming systems to fail and be replaced by alternative land-uses.

JEL-codes: H23 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2002
New Economics Papers: this item is included in nep-env and nep-pbe
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