 Estimating the effect of an EU-ETS type scheme in Australia using a synthetic treatment approachHeather Anderson, Jiti Gao, Guido Turnip, Farshid Vahid and Wei Wei Energy Economics, 2023, vol. 125, issue C Abstract: Experts commonly believe that Australia needs to intensify efforts to meet its 2030 emission target (OECD, 2019). A carbon policy that has been considered and was briefly implemented and repealed by the Australian government is a European Union style Emission Trading Scheme (EU-ETS). We estimate the hypothetical impact of Australia adopting an emissions trading policy in 2005, which corresponds with the establishment of the EU-ETS. We develop a synthetic treatment approach that constructs a counterfactual measure of Australian carbon emissions that makes use of the time series properties of pre-2005 and post-2005 emissions in European countries. While we find that this policy would have led to a statistically significant decrease in the Australian per-capita carbon emissions, the magnitude of this reduction would have been small and environmentally insignificant. We conclude that a more effective carbon policy rather than an EU-ETS type policy is needed to meet Australia’s emission target. Keywords: Carbon emissions; Climate change; Common trends; Mitigation policy; Synthetic treatment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:125:y:2023:i:c:s0140988323002967 DOI: 10.1016/j.eneco.2023.106798 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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