The Australian Carbon Tax - A Step in the Right Direction But Not Enough

In English In this paper we argue that the recently legislated carbon tax in Australia is a step in the right direction towards a low-carbon society, but not enough: de-carbonizing Australia calls for a radical structural transformation of the economy. Based on past experiences and economic theory, we argue that current climate policies should be complemented with an additional set of development policies aimed at developing new technology that has the capacity to structurally change the economy including the demand side of the economy. We suggest eight policy measures which can be pursued together with the carbon tax to reduce CO2 emissions