Climate policy and border adjustment regulation: Designing a coherent response

The Australian Government's Clean Energy Legislative Package includes the legislative infrastructure for a carbon tax which came into full effect in July 2012. Although the legislation is comprehensive, we argue that it lacks a mechanism that adequately deals with the competing policy objectives of (a) achieving reductions in greenhouse gas emissions; (b) not impairing national economic growth; and (c) ensuring that international obligations regarding response measures, such as a carbon tax, do not adversely affect developing countries