Inderscience Publishers

Models and muddles: the cost of meeting emission targets

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In 1990, the Australian Government adopted an interim target of reducing greenhouse gas emissions by 20%, subject to it not adversely affecting Australia's trade competitiveness in the absence of similar action by other competitor countries. Since then, a series of reports have attempted to assess the economic effects on Australia of reducing emissions. This paper reviews these reports and their findings. It concludes that, despite some pessimistic forecasts, there may be no net adverse economic effect on Australia but that vested interests have obscured the discussion of this issue.

Keywords: carbon tax, climate change, carbon dioxide, Earth Summit, Framework Convention, government policies, greenhouse gases, GHG emissions, economics, Australia, emission targets

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