Abstract
The Australian government announced a tax of $23 per tonne of CO2 as a starting carbon price which commenced from 1 July 2012. The economic implications of this carbon price are projected using a descriptive Computable General Equilibrium model of the Australian economy titled A3E-G. With an explicit tax, the A3E-G model is capable of handling endogenous substitution among energy inputs and alternative allocations of resources among energy and capital. The A3E-G model has been calibrated using an Environmentally-extended Social Accounting Matrix (ESAM). The policy experiments reveal that high carbon emission cuts are possible at higher carbon prices. A carbon price of $23 reduces GDP by 0.6 percent and real consumption by 0.17 percent and increases the consumer price index by 0.71 percent in the short-run. This policy increases energy prices, especially electricity prices by 24 percent in the short-run and 9 percent in the long-run. Household impacts are found to have a proportional to progressive tax incidence in the short-run and a progressive tax incidence in the long-run.
Author Information
Disna Sajeewani, University of Wollongong, Australia
Paper Information
Conference: ACSEE2013
Stream: Sustainability
This paper is part of the ACSEE2013 Conference Proceedings (View)
Full Paper
View / Download the full paper in a new tab/window
To cite this article:
Sajeewani D. (2013) A Multi-Sectoral, Multi-Household, General Equilibrium Model to Assess the Impact of a Carbon Price on the Australian Economy ISSN: 2186-2311 – The Asian Conference on Sustainability, Energy and the Environment 2013 – Official Conference Proceedings https://doi.org/10.22492/2186-2311.20130540
To link to this article: https://doi.org/10.22492/2186-2311.20130540
Comments
Powered by WP LinkPress