Trade implications of climate change policy


The purpose of this project is to analyse emerging climate policies in Australian and around the world with a view to understanding the trade implications of these policies — particularly for the agricultural sector. By changing relative costs of production and relative prices, it is expected that climate policies could exert a significant influence on trade patterns, offering both opportunities and threats to Australian producers. The purpose of this project is to use quantitative analysis (supplemented with qualitative assessments as appropriate) to analyse the trade implications of climate policy. The resulting information will be useful for stakeholders and rural policy makers in both developing new policies and in planning for the implications of existing policies.


National Rural Issues

Research Organisation

Centre for International Economics

Objective Summary

The objectives of the proposed R&D are to: +collate and summarise emerging climate policies in Australia and in key trade partner and competitor countries (these will be defined from the perspective of agricultural trade); +understand the implications of these policies for relative prices and costs, both within and between different economies; +analyse, using an appropriate quantitative framework the implications of these relative price and cost changes for trade in key agricultural products; +combine the quantitative assessment with an appropriate qualitative assessment; and +draw policy and strategic implications from the perspective of the rural sector.

Project Code


Project Stage


Project Start Date

Tuesday, March 1, 2011

Project Completion Date

Friday, September 28, 2012

Journal Articles From Project

Not Available

National Priority

An environmentally sustainable Australia

National Priority

Soil, water and managing natural resources

National Priority

NRI-National Rural Issues


Related publications


Modelling the Trade Implications of Climate Mitigation Policy - International carbon pricing and trade flows