Should Households and Businesses Receive Compensation for the Costs of Greenhouse Gas Emissions?

John Freebairn

No 1071, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: Arguments for, and then the form and level of, compensation of households and businesses for the additional costs of an emissions trading scheme to lower greenhouse gas (GHG) emissions are evaluated. With most of the costs passed forward to households as higher consumer prices, a sequential set of direct income transfers to all households is proposed to meet equity and macroeconomic stability objectives. In the event that Australia proceeds with a scheme before some of the other global polluters, to avoid carbon leakage and unnecessary industrial restructuring a consumption base system of taxing the GHG component of imports and compensating the GHG component of exports is proposed.

Keywords: Macroeconomics: Consumption; Saving; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance (search for similar items in EconPapers)
JEL-codes: E21 G34 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009
New Economics Papers: this item is included in nep-ene, nep-env and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://fbe.unimelb.edu.au/__data/assets/pdf_file/0008/801089/1071.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:1071

Access Statistics for this paper

More papers in Department of Economics - Working Papers Series from The University of Melbourne Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Dandapani Lokanathan ().