Potential impacts of the Emissions Reduction Fund on the Australian economy
Duy Nong and
Mahinda Siriwardana ()
Energy Economics, 2018, vol. 74, issue C, 387-398
Abstract:
This paper examines the impacts of the Emissions Reduction Fund on the Australian economy. The GTAP-E model has been extended to allocate the subsidy directly to each eligible sector. The simulation of the subsidy policy has been supplemented by introducing an improvement of energy efficiency to non-agricultural sectors and of resource efficiency by using endowment factors in the agricultural sector. Results indicate that, with the current budget of A$2.55 billion, or US$1.86 billion (Scenario 1), Australia can only achieve the minimum cumulative emissions reduction target of 225 MtCO2-e during 2015–20. Australia needs a budget of US$2.08 billion (Scenario 2) to achieve the maximum cumulative emissions reduction target of 279 MtCO2-e. In both scenarios, the agricultural sector receives the highest payment from the Australian Federal Government under the subsidy programme, followed by the electricity generation sector. Under the scheme, Australia experiences only a mild contraction in the economy, with a reduction of real GDP by 0.37% and 0.55% in the two scenarios, respectively.
Keywords: Australia; Emissions Reduction Fund; Energy efficiency; Resource efficiency; Electricity generation sector; GTAP-E model (search for similar items in EconPapers)
JEL-codes: C68 D58 Q28 Q58 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S014098831830241X
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:74:y:2018:i:c:p:387-398
DOI: 10.1016/j.eneco.2018.06.023
Access Statistics for this article
Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant
More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().