Document Type

Journal Article

Publication Details

Ergas, H. (2010). New policies create a new politics: issues of institutional design in climate change policy. The Australian Journal of Agricultural and Resource Economics, 54 (2), 143-164.


Institutional design focuses on the task of providing accountability and effective monitoringof decision-making by bodies vested with the coercive powers of the state in acontext where information is inherently limited, costly to acquire and asymmetricallydistributed. This paper focuses on issues of institutional design in the context of climatechange policy. It examines proposals advanced in the June 2008 Draft and FinalReports of the Garnaut Climate Change Review (`Garnaut Reports), and in theGovernments July 2008 Green Paper and December 2008 White Paper on the CarbonPollution Reduction Scheme (`Green and White Papers) with respect to how revenuesraised by the sale of emissions permits would be used; and second, the proposed governancearrangements for the emissions trading scheme.