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A CAUTIONARY NOTE ON ENVIRONMENTAL ECONOMICS
Authors:Brian Dollery  Joe Wallis
Abstract:Environmental questions have become a permanent feature of the political landscape in contemporary Australia and now play a significant role in election campaigns at both state and federal levels. Indeed, one of the most significant policy debates in the 1996 Federal election focussed on the environmental policy proposed by the Liberal/National Party coalition, which sought to fund a host of environmental programs from the proceeds of a part privatisation of Telstra. The trade-offs involved in this policy have generated substantial opposition to it and served to underline the prominence of environmental questions in Australian politics. Despite the importance of ‘the environment’ in popular thought, public debate is still typically characterised by ‘feel good’ policy announcements by politicians, sensationalist media reporting and deceptive claims by some environmental interest groups. Whilst progress has undoubtedly been made, the result has often been a plethora of inchoate and frequently conflicting policies. Not surprisingly this ‘muddle through’ approach has produced numerous instances of government intervention not only failing to meet its planned objectives but also generating unintended consequences.
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