The policy regime and shift of emissions trading scheme by Australian Labor Party and Emissions Reduction Fund by the coalition in Australia year 2013-2018

Abstract

Emissions reduction policies for pollutant companies in Australia has become one issue that divides society and parliament. This study discusses the causes of the shifting of the Emissions Trading Scheme (ETS), a carbon pricing policy by the Australian Labor Party to the Emissions Reduction Fund (ERF) by the Coalition. This study used the political exchange concept by Bruno Dente which describes a mutually beneficial relationship between the Coalition (consisting of the Liberal Party and National Party) with business groups. In addition, Carter A. Wilson’s theory of policy regimes and policy regime change was used to see the presence of interest groups and stages in policy shifts. This study used a qualitative approach by collecting data from literature studies and the Australian institution’s website, Hansard. Based on the findings, political exchange between the Coalition and business groups encourages the creation of conditions where stressors / enablers, legitimacy crisis, and power shifts occur. The Coalition as opposition then weakens the ETS policy regime by the reigning Australian Labor Party (ALP). After the Coalition won the election, there was an ETS policy shift by ALP to become an ERF which passed through the House of Representatives and Senate, and was approved by Governor General in 2014.