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Policy Uncertainty about Australia's Carbon Price: Expert Survey Results and Implications for Investment

Jotzo, Frank; Tim, Jordan; Fabian, Nathan


Australia's carbon-pricing policy remains in doubt due to a lack of bipartisan political support. A survey of Australian-based carbon-pricing experts demonstrates profound policy uncertainty: 40 per cent of respondents expect the current carbon-pricing mechanism to be repealed, but 80 per cent expect that there will be a carbon price in 2020. The forward price curve is U-shaped and has great variance, with the 60 per cent confidence interval spanning from zero to A$25/t in 2020. Carbon policy...[Show more]

CollectionsANU Research Publications
Date published: 2012
Type: Journal article
Source: The Australian Economic Review
DOI: 10.1111/j.1467-8462.2012.00709.x


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