The Deputy Prime Minister and Treasurer and the Minister for Climate Change and Energy Efficiency released the Strong growth low pollution: modelling a carbon price (SGLP) report on 10 July 2011. An update to the SGLP report was released on 21 September 2011 which revises the policy parameters of the national and sectoral economic modelling in the SGLP report. The update presents two additional scenarios: one that reflects the Clean Energy Future package endorsed by the Multi‑Party Committee on Climate Change (MPCCC), with a starting carbon price of $23/t CO2‑e instead of the $20/t CO2‑e modelled in the SGLP report; and one that also includes additional Government policy measures.
The Treasury modelling has been prepared to inform policy design and public discussion about carbon pricing. Treasury has modelled a range of scenarios which explore different environmental targets and design features of a carbon pricing scheme. The modelling provides important insights into the economic impacts of carbon pricing at global, national, sectoral and household levels.
The Treasury's modelling demonstrates that the Australian economy and the global economy both continue to grow strongly at the same time as we cut pollution to reduce the risks of dangerous climate change.