A Multi-Sectoral, Multi-Household, General Equilibrium Model to Assess the Impact of a Carbon Price on the Australian Economy

Author(s)
Sajeewani, Disna
Siriwardana, Mahinda
McNeill, Judith
Meng, Xianming
Publication Date
2013
Abstract
This paper analyses the macro-economic, sectoral and household effects of an AU$23per 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 of the Australian Economy. 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 to show a detailed picture of carbon emissions by sectors, energy sources, electricity generating sectors, household income groups and various occupations.
Citation
The International Journal of Climate Change: Impacts and Responses, 4(4), p. 81-94
ISSN
1835-7156
Link
Publisher
Common Ground Publishing
Title
A Multi-Sectoral, Multi-Household, General Equilibrium Model to Assess the Impact of a Carbon Price on the Australian Economy
Type of document
Journal Article
Entity Type
Publication

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