Environmental Taxation in China and Asia-Pacific
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Environmental Taxation in China and Asia-Pacific

Achieving Environmental Sustainability through Fiscal Policy

Edited by Larry Kreiser, Julsuchada Sirisom, Hope Ashiabor and Janet E. Milne

Environmental Taxation in China and Asia-Pacific contains an integrated set of detailed chapters providing insights and analysis on how fiscal policy can be used to achieve environmental sustainability. Highly topical chapters include energy tax policy in China, environmental fiscal reform, carbon tax policy in northeast Asia and environmental taxation strategies in China, Asia and Australia, as well as many other relevant topics.
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Chapter 9: Mandating Emission Targets Can Significantly Reduce Road Transport Emissions in Australia

Anna Mortimore


JOBNAME: Kreiser IX PAGE: 3 SESS: 34 OUTPUT: Wed Aug 24 14:42:29 2011 9. Mandating emission targets can significantly reduce road transport emissions in Australia Anna Mortimore In 2003, the Australian government and the Federal Chamber of Automotive Industry (FCAI) reached a third agreement to improve fuel efficiency of all new passenger vehicles powered by petrol, by setting a voluntary target of 6.8 l per 100 km by 2010, which is equivalent to an emission target of 159 g CO2 per kilometre. Australia failed to meet its third voluntary fuel efficiency target, illustrating that voluntary fuel efficiency targets do not work. The FCAI introduced an emission target of 222 g CO2/km by 2010, which was not agreed to by the Australian government. In 2009, the Final Report by the Vehicle Fuel Efficiency Working Group recommended mandating emission targets. However, the May 2010 Final Report of Australia’s Future Tax System stated that such targets are not required if a cap and trade system, known as a carbon pollution reduction scheme (CPRS), is introduced, as supplementary policies such as regulations will not achieve more abatement than the CPRS alone. In September 2010, the Australian government expressed commitment to introduce mandatory emission targets, but not until 2015. This chapter examines whether a CPRS would have significantly reduced road transport emissions when fuel price increases can be inelastic and consumer behavioural anomalies may lead to market failure or whether a command and control regulation emission standards...

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