REDUCING AUSTRALIAN ENERGY SECTOR GREENHOUSE-GAS EMISSIONS

In this paper the policy implications of reducing greenhouse gas emissions in the Australian energy sector are examined. Detailed model analysis indicates that the greenhouse target adopted by the Australian government can be met but only with substantial change in the structure of the energy sector, achieved at considerable cost. The change is likely to be concentrated in electricity generation. Large changes are implied in other areas as well, particularly the use of renewable resources. The changes in Australia's energy sector have important macroeconomic implications The impacts are less pronounced for scenarios with less severe targets in line with the UN Convention on Climate Change.