Climate mitigation policy, both in Australia and overseas, is one of the more complex policy areas to evolve in recent years. The introduction of a ‘carbon price’ within the Australian economy has led to
debate, especially regarding costs, benefits and indirect effects.
This research addresses one aspect of this issue: the potential economic implications of mitigation policies for agricultural trade. This is important given the complexity of the economic interactions involved. Also, the modelling framework applied in this research provides a useful tool for understanding the potential trade implications of climate mitigation policies applied domestically, as well as by trading partners.