ECONOMISTS CRITICIZE ABBOTT GOVERNMENT’S CLIMATE CHANGE POLICY
Last week, three senior Australian economists criticized the Abbott government's policies on climate change. Economist Ross Garnaut and former Treasury secretary Ken Henry attacked the government’s “direct action” policy, whereby companies and farmers would be paid to reduce emissions, arguing that it would cost close to $4 or $5 billion—rather than the $1.5 billion the government predicted. Former Reserve Bank governor and current chairman of the Climate Change Authority Bernie Fraser followed suit on Wednesday with an address to the National Press Club.