New analysis: nationals agree to cost the economy $ 210 billion

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The fiscal cost of persuading the National Party to support Scott Morrison’s net zero goal is insignificant compared to the costs to the economy of delaying new investment, according to a new analysis by the Australia Institute on economic modeling.

The Business Council of Australia recently released a modeling by Deloitte Access Economics of the economic benefits of introducing a 46% target for 2030 and a net zero target for 2050. Deloitte released a modeling last year Similar benefits of a net zero target for 2050 without a higher ambitious 2030 target. A comparison of the two modeling exercises reveals that a more ambitious 2030 target has a net present value of $ 210 billion.

“According to modeling conducted by Deloitte Access Economics, a 46% emission reduction target for 2030 would lead to more investment, more jobs, lower electricity prices and more than $ 210 billion with benefits economic. The idea that Scott Morrison would compensate the National Party for inflicting such damage on the Australian economy is just bizarre, ”said Dr Richard Denniss, chief economist of the Australia Institute.

“It is not uncommon in Australian politics for a government to be determined to introduce major reform to compensate certain groups, but this is the first time that an Australian Prime Minister has offered compensation to the very group that is causing harm. to the whole community.

“It’s pretty clear that investing more money in renewables, storage and energy efficiency over the next 9 years will lead to job creation, lower electricity prices and growth in electricity. productivity. These new investments will not cause any harm to the agricultural or mining sectors, but will help fight climate change and start creating jobs in regional areas today.

“Scott Morrison is using climate change as an excuse to pay taxpayer money to the National Party in exchange for excluding them from any early reform. They are seeking billions of dollars in compensation despite the fact that they have provided no evidence that a more ambitious 2030 target would harm anything other than their egos, ”said Dr Denniss.

Background – quotes from the Business Council of Australia report

“The economic benefits of faster and earlier decarbonization of Australia are twofold: local regional transitions can be better planned and therefore have lower economic and social costs; and economic growth will be stronger with a greater share of new green export industries.

“Increasing the share of renewable energy production in our electricity system is not only important for reducing emissions, it is fundamental for lowering electricity prices for consumers establishing new industries. export.

“To seize this economic opportunity, Australia must act now to invest in the development and deployment of these new technologies and become a global leader.

“To seize this economic opportunity, Australia must act now to invest in the development and deployment of these new technologies and become a global leader.”

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