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Climate | Environment | Emissions Reduction

Consumption tax modelling

Carbon tax - a genuine alternative to cap-and-trade: New modelling shows carbon tax would have less impact on GDP and more impact on reducing emissions than cap-and-trade. [Research and Policy article]

A carbon tax is more economically and environmentally sound than a cap-and trade system such as the CPRS (carbon pollution reduction scheme), according to modelling released by CEDA (the Committee for Economic Development of Australia).

The modelling, based on the same Treasury framework as earlier models, was commissioned by CEDA from Access Economics.

The modelling is available by following the link below.

"Preliminary economic modelling of a national consumption-based approach to greenhouse gas emissions".

Geoff Carmody in his chapter in CEDA's latest report A Taxing Debate: Climate policy beyond Copenhagen labels the Australia's Carbon Pollution Reduction Scheme (CPRS) 'the GST from hell' claiming it will affect exports, exempt imports and reduce competitiveness. He argues that it is more likely to drive emissions (and jobs) overseas than reduce emissions globally. Consumption-based emissions policy: A vaccine for the CPRS 'trade flu'? questions the proposed policy model as an acceptable international solution and notes that, China supports a consumption-based approach.


Geoff Carmody presented preliminary results and discussed the benefit a tax at a recent CEDA event. His speech is available in various formats by clicking the links below.

Our Related Research

Climate | Environment | Emissions Reduction October 30, 2009

Growth 61: A Taxing Debate - Climate policy beyond Copenhagen

This report recommended a carbon tax as a viable "Plan B" to replace earlier, problematic cap-and-trade proposals.

Read more Climate | Environment | Emissions Reduction October 30, 2009

Climate Change: Getting it right

CEDA's continuing mission is to promote intelligent analysis and vigorous debate on our biggest global challenges. The report aims to stimulate a better understanding of climate change issues. In particular, Robert Shapiro's paper examines the two most prominent strategies for reducing greenhouse gases: a carbon tax and cap-and-trade.

Read more Climate | Environment | Emissions Reduction January 9, 2009

CEDA Climate change public forum

Climate policy is emerging as one of the world's most testing economic, political and social challenges since CEDA began nearly 50 years ago. In the lead-up to the UN Climate Change conference in Copenhagen, CEDA provides a platform for Australian and international climate policy debate. [CEDA event]

Read more

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