In Australia we compare and contrast the carbon tax policy with the Emissions Reduction Fund. If we focus is on development of carbon pricing instruments globally. A potential risk identified is carbon leakage. A next step in the development of these markets is the potential for linking carbon pricing across the different schemes.

Q) Illustrate with a diagram and explain in words how the former Labor Government's carbon tax policy compares with the Coalition Government's direct-action plan (in Australia)?

Please include the reference