Climate change and the Australian agricultural and resource industries

The mainstream science and standard economic analysis together tell us that the Australian agricultural and resource industries are likely to be affected profoundly by climate change and the global response to it. They are likely to be affected profoundly whether or not there is an effective global mitigation effort, and whatever the nature of Australia’s contribution to that effort. The Australian economy and community as a whole, and the agricultural and resource sectors within the national economy, would maximise their prospects for future prosperity if there were comprehensive global mitigation, within which all significant economies were subject to quantitative emissions constraints, and trade in emissions entitlements introduced similar costs of abatement at the margin across all substantial economic activities in all substantial economies. This is easier said than done. The building of a comprehensive global agreement has required some countries to move ahead of others, and national mitigation regimes will be operating in an ad hoc world for some time. There are immense challenges to efficient global and national resource allocation, to effectiv