This paper analyses the macro-economic, sectoral and household effects of a $A23per tonne carbon price to achieve carbon dioxide (CO2-e) emissions reduction targets in the Australian economy by employing a static computable general equilibrium (titled as A3E-G) model. The A3E-G model developed for this study is capable of handling endogenous substitution among energy inputs and alternative allocation of resources among energy and capital. The A3E-G model incorporates an explicit tax system that evaluates carbon price impact on the economy under both short-run and long-run closures. The model has been calibrated using an environmentally-extended social accounting matrix (ESAM) which is disaggregated show detailed picture of carbon emissions by sectors, energy sources, electricity generating sectors, household income groups and various occupations.
|Keywords:||Australia, Computable General Equilibrium Model, Carbon Price|
Post Graduate Student, School of Business, Economics and Public Policy, University of New England, Armidal, NSW, Australia
Professor in Economics, School of Business, Economics and Public Policy, University of New England, Armidale, NSW, Australia
Program Leader, Institute, for Rural Futures, University of New England, Armidale, NSW, Australia
Senior Project Officer, Institute for Rural Futures, University of New England, Armidale, NSW, Australia
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