May 2, 2019
The Australian economy is facing a $130 billion hit to its bottom line unless concerted action is taken to combat climate change, a new report released by The Australia Institute has concluded.
The report concluded:
The cost of inaction on climate change is huge – Australia’s GDP would average $130 billion per year lower if the Paris Agreement is not achieved according to a prominent study.
Under the carbon price period, Australia successfully reduced emissions by 2% while the economy grew by 5%.
Economic literature suggests the economic impacts of climate policy will be minor.
TAI’s Research Director, Rod Campbell, said that the report clearly shows that the Australian economy can continue to grow while pursuing aggressive carbon abatement.
“Australians have seen firsthand how emissions reduction and economic growth are possible at the same time – as a nation Australia experienced this very phenomenon five years ago,” Mr Campbell said.
“For political leaders to suggest we now need economic modelling to tell us whether this is indeed possible after all is a furphy.
“In just two years Australia reduced emissions by 2% and grew the economy by 5% under a carbon price and the sky did not fall in. In fact, employment grew by 200,000 jobs.
The full report can be found here.