Australian Economic Advisory Agency Backs Carbon Price to Reduce Greenhouse Gas Emissions

MELBOURNE, Australia—After reviewing greenhouse gas policies in economies including the United States and China, the Australian government’s main economic advisory agency said in a report released June 9 that imposing a price on carbon is likely to be the most cost-effective way to cut emissions.

The Productivity Commission said lower-cost abatement could best be achieved in Australia through a broadly applied price on carbon, regardless of the policy choices made by other economies.

The report strengthens the government’s hand as it attempts to develop a carbon pricing regime that would begin with a fixed-price phase and then switch to a ...