Climate change, competitiveness and carbon leakage: policy responses for robust outcomes

The ratification of the Kyoto Protocol and the need to reduce emissions worldwide, coupled with the idea of Common But Differentiated Responsibilities, has led to a situation where there has been uneven uptake of carbon pricing mechanisms both nationally, and sub-nationally.

This leads to competitiveness issues related to international trade and can result in carbon leakage; an increase in emissions in those countries without pricing mechanisms, which erodes the emissions reductions in compliant countries. My Honours thesis will aim to:

  • Analyse a full range of policies that have either already been implemented, or have been suggested, in order to combat these competitiveness issues and stop or reduce carbon leakage
  • Recommend the best policy options for countries implementing carbon pricing, in particular Australia.

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