Global Carbon Taxes: An Australian Perspective

Warwick McKibbin, David Pearce

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

A number of countries have in principle committed themselves to reducing greenhouse gas emissions over the next decade. Assessing the economic implications of the likely policies necessary to achieve these goals requires a comprehensive economic modelling framework. In this paper we outline the G-Cubed model and use it to analyse the effects of alternative greenhouse gas mitigation strategies.

G-Cubed is a multiregion, multisector, intertemporal general equilibrium model. It is unique in integrating production, consumption and financial aspects of each economy. Its current version has 8 regions and 12 sectors and can be solved for horizons of up to 100 years.

We find that a carbon tax that is levied only in Australia involves considerable costs without any noticeable effects on global emissions. Even an OECD-wide carbon tax is not sufficient to prevent global emission from rising significantly.
Original languageEnglish
Title of host publicationGreenhouse
Subtitle of host publicationCoping with Climate Change
EditorsW. J. Bouma, C. I. Pearman, M. R. Manning
Place of PublicationCollingwood
PublisherCSIRO Publishing
Pages570-585
Number of pages16
ISBN (Electronic)978-0-643-10503-4, 978-0-643-10573-7
ISBN (Print)0 643 05688 2
DOIs
Publication statusPublished - 1996

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