Carbon price impacts for Queensland
On 10 July 2011, Securing a Clean Energy Future: The Australian Government’s Climate Change Plan (the CEF plan) was released, outlining climate change measures agreed by the Multi-Party Climate Change Committee (MPCCC) and additional transition and abatement measures proposed by the Australian Government. The CEF plan aims to deliver on the commitment that by 2020, Australia will reduce carbon pollution by 5 per cent from 2000 levels. This will require cutting expected pollution by at least 23 per cent in 2020.
The key element of the CEF plan involves putting a price on carbon pollution to create incentives to reduce greenhouse gas emissions and promote investment in clean energy. Under the carbon price, around 500 of the biggest polluters in Australia will need to buy and surrender a permit for every tonne of carbon pollution they produce. A carbon price will not apply to agricultural emissions, or emissions from light on-road vehicles.
The Australian Treasury has released detailed modelling of carbon pricing impacts for Australia, however, only high-level results were provided for individual jurisdictions.
Based on the Australian Treasury model and assumptions, Queensland Treasury has prepared a report assessing the implications of the CEF plan for the Queensland economy, Budget and Government-owned electricity generators.
The report covers:
- economic impacts, including on macroeconomic variables such as gross state product (GSP), and both industry and regional impacts
- fiscal impacts on the general government sector, including changes to State revenues (such as royalties and dividends) and operating expenditure
- impacts on the economic value of Government-owned electricity generators.
Deloitte Access Economics were also engaged to assess carbon pricing impacts for Queensland using an alternate economic model that incorporates different underlying assumptions about the way the economy will adjust to carbon pricing. This analysis is provided for information purposes only, and does not represent the views of the Queensland Government.
|Carbon price impacts for Queensland||August 2011||download (885 K)|
|Economic impacts of the Clean Energy Future on Queensland – Deloitte Access Economics||August 2011||download (810 K)|
Last reviewed 4 March 2013