Economics at your fingertips  

An assessment of a proposed ETS in Australia by using the MONASH-Green model

Duy Nong, Sam Meng and Mahinda Siriwardana

Energy Policy, 2017, vol. 108, issue C, 281-291

Abstract: Using the MONASH-Green model and a database containing detailed energy sectors, this paper evaluates the effects of a proposed emissions trading scheme on the Australian economy and the emissions levels. The simulation results indicate that the price of carbon permits has to increase from A$4.1 per tonne in 2015 through A$13.1 per tonne in 2020 to A$41.3 per tonne in 2030 to achieve a target of 28% below the 2005 level in 2030. The main buyers of permits would be the agricultural sector, black-coal electricity sector and brown-coal electricity sector. Compared to the business-as-usual scenario, Australia's GDP is projected to be 0.85% lower in 2020 and 1.6% lower in 2030. Household welfare, measured in terms of equivalent variations, will increase due to compensations provided by the government. The results also lend strong support towards the transition to renewable energy. The stylised model was adapted to inform the results of the full model.

Keywords: Australian economy; Emissions trading scheme; Energy sectors; MONASH-Green model (search for similar items in EconPapers)
JEL-codes: K32 Q58 D58 Q43 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
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:

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2018-06-23
Handle: RePEc:eee:enepol:v:108:y:2017:i:c:p:281-291