Abstract
There is a limited case for assisting trade‐exposed emissions‐intensive industries during a transitional period during which Australian resource industries but not all of their major competitors are subject to emissions constraints. There is no case for protecting Australian industry from all adjustment and loss of asset values during the transition. The valid case is analogous to anti‐dumping assistance, being confined to the case where weaker emissions constraints elsewhere would force adjustments that would be reversed later. The case for assistance is limited by the effect of others’ weaker emissions constraints on global resource prices.
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