Carbon capers

Can Australia design a carbon trading policy to meet the challenges of an uncertain market?

Hang on, don’t we already have one? Not according to Australian National University economist Warwick McKibbin, who is also co-director for climate and energy at the Democrat-leaning Brookings think tank in Washington DC.

McKibbin was recently quoted by Australia’s national media as saying many aspects of the Gillard government’s carbon policy demonstrate “a clear misunderstanding” of how to design climate policy in an uncertain world.