make better decisions regarding appliance
purchases. Figure 52 shows how the demand
for new refrigerators shifted towards more
efficient models following the introduction of
energy use labels and minimum performance
standards; and
• direct measurement of methane in underground
coal mines for safety purposes, which allows
those emissions to be priced more accurately
than using a standard regional factor.
In many cases, carbon pricing can work
alongside complementary policies to support
policy objectives other than emission reductions.
This provides the opportunity to implement a
broader package of reforms that enhance the
performance of each policy and support sustainable growth.
(2) Overlapping policies
Overlapping policies can have a positive or
negative impact on the efficiency of climate
policy. Some will increase efficiency, especially
when they are addressing a genuine market failure. For instance, without guidance, consumers
Fig. 52 Labels may have helped improve consumer choice of refrigerators in Australia. Source Energy Efficiency
Strategies (2016)
Fig. 51 The efficiency of climate policy is affected by the interaction of carbon pricing with complementary,
overlapping and countervailing policies. Source Vivid Economics
Special Report 4: China’s Energy System Revolution
541
purchases. Figure 52 shows how the demand
for new refrigerators shifted towards more
efficient models following the introduction of
energy use labels and minimum performance
standards; and
• direct measurement of methane in underground
coal mines for safety purposes, which allows
those emissions to be priced more accurately
than using a standard regional factor.
In many cases, carbon pricing can work
alongside complementary policies to support
policy objectives other than emission reductions.
This provides the opportunity to implement a
broader package of reforms that enhance the
performance of each policy and support sustainable growth.
(2) Overlapping policies
Overlapping policies can have a positive or
negative impact on the efficiency of climate
policy. Some will increase efficiency, especially
when they are addressing a genuine market failure. For instance, without guidance, consumers
Fig. 52 Labels may have helped improve consumer choice of refrigerators in Australia. Source Energy Efficiency
Strategies (2016)
Fig. 51 The efficiency of climate policy is affected by the interaction of carbon pricing with complementary,
overlapping and countervailing policies. Source Vivid Economics
Special Report 4: China’s Energy System Revolution
541