Climate change and the Australian agricultural and resource industries
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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.