Carbon Pricing and Renewable Energy Innovation : A Comparison of Australian, British and Canadian Carbon Pricing Policies

Introducing its now-abolished carbon price from July 2012, Australia argued that a price on carbon would reduce greenhouse gas emissions by improving energy efficiency and increasing investment in clean technology innovation. The United Kingdom has priced carbon since 2008 and is in the process of major electricity market reform with the aim of attracting 100 billion pounds of infrastructure investment. British Columbia in Canada introduced a carbon tax in 2008, providing support for clean technology industries through a variety of allowances and operating subsidies. This article compares the United Kingdom, Canada and Australia, to assess the evidence base and policy experience of these jurisdictions in carbon pricing. In so doing, the article identifies what lessons can be learnt from these policy frameworks in order to promote investment in low-carbon innovation