Location

Bld 67.202

Start Date

2-12-2012 4:00 PM

End Date

2-12-2012 4:30 PM

Description

In recent years the build-up of greenhouse gas emissions in the atmosphere has been recognized as a major environmental problem which is likely to lead to global warming, with a range of negative long-term impacts upon the atmosphere of the planet (IPCC et al., 2001; The Allen Consulting Group Pty Ltd, 2006). There seems to be a consensus that urgent action is necessary to curb the build-up of carbon in the atmosphere but no global consensus on the urgency of the action required and the best way to deal with this problem (IPCC et al., 2007 ). In this paper we recognize the key roles of science and technology in relation to the problem, as science has identified the problem and the solution lies in developing and sharing alternative technologies (see for example Diesendorf, 2007; The Allen Consulting Group Pty Ltd, 2006). But a key requirement is for behavioural change, as people and businesses will have to change their energy sources from those currently dominated by carbon fuels to alternative ‘green energy’ sources over time and this can be facilitated by a price signal. If we are to deal with the possible problems of climate change the cost of carbon-based energy must be changed to reflect its full cost, including its environmental damage (Andrew et al., 2010), and there are three main policy instruments available to governments for imposing a price on greenhouse emissions which makes business internalize the cost of their CO2 emissions currently borne by the community (see e.g. Anthoff & Hahn, 2010; Mokyr, 2008). One popular approach is based on a ‘cap-and-trade system’, such as the European Union Emissions Trading Scheme (EU ETS) and the Australian Carbon Pricing Scheme [1]. This approach imposes a quantity cap on emissions and expects the resulting scarcity to create a market determined price for emissions (Garnaut & Marnie, 2011). A second approach would levy a charge directly upon polluters through a carbon tax or an emissions fee, this approach would directly impose a price upon emissions and the cost increase could be expected to reduce demand, which will reduce the quantity of emissions indirectly (Baumol & Oates, 1971; Coase, 1960; Pigou, 1952). A third approach would regulate emissions directly through pollution controls, renewable energy requirements or other controls, directly reducing emissions by requiring action by polluting industries to reduce their emissions.

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Dec 2nd, 4:00 PM Dec 2nd, 4:30 PM

Environmental Policy Instruments and Policy Principles

Bld 67.202

In recent years the build-up of greenhouse gas emissions in the atmosphere has been recognized as a major environmental problem which is likely to lead to global warming, with a range of negative long-term impacts upon the atmosphere of the planet (IPCC et al., 2001; The Allen Consulting Group Pty Ltd, 2006). There seems to be a consensus that urgent action is necessary to curb the build-up of carbon in the atmosphere but no global consensus on the urgency of the action required and the best way to deal with this problem (IPCC et al., 2007 ). In this paper we recognize the key roles of science and technology in relation to the problem, as science has identified the problem and the solution lies in developing and sharing alternative technologies (see for example Diesendorf, 2007; The Allen Consulting Group Pty Ltd, 2006). But a key requirement is for behavioural change, as people and businesses will have to change their energy sources from those currently dominated by carbon fuels to alternative ‘green energy’ sources over time and this can be facilitated by a price signal. If we are to deal with the possible problems of climate change the cost of carbon-based energy must be changed to reflect its full cost, including its environmental damage (Andrew et al., 2010), and there are three main policy instruments available to governments for imposing a price on greenhouse emissions which makes business internalize the cost of their CO2 emissions currently borne by the community (see e.g. Anthoff & Hahn, 2010; Mokyr, 2008). One popular approach is based on a ‘cap-and-trade system’, such as the European Union Emissions Trading Scheme (EU ETS) and the Australian Carbon Pricing Scheme [1]. This approach imposes a quantity cap on emissions and expects the resulting scarcity to create a market determined price for emissions (Garnaut & Marnie, 2011). A second approach would levy a charge directly upon polluters through a carbon tax or an emissions fee, this approach would directly impose a price upon emissions and the cost increase could be expected to reduce demand, which will reduce the quantity of emissions indirectly (Baumol & Oates, 1971; Coase, 1960; Pigou, 1952). A third approach would regulate emissions directly through pollution controls, renewable energy requirements or other controls, directly reducing emissions by requiring action by polluting industries to reduce their emissions.