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Abstract
Three policy options for greenhouse gas abatement in the predominantly grazing systems of
Western Australia are analysed. The two taxation policies (a tax on total emissions, and a tax
on methane emissions only) are only effective at extreme tax rates ($85/t CO2 equivalents)
where the farming systems are economically unviable. The third policy option, emission
restrictions, allows the farm to remain profitable at approximately four times greater
abatement levels than the taxation policies, and is found to be the most effective and efficient
policy option studied. However, it is concluded that the introduction of any farm-level policy
for greenhouse gas abatement would be politically unpopular and, in the absence of swift and
innovative technological change, would cause the current farming systems to fail and be
replaced by alternative land-uses.