Climate change mitigation policy modelling

Source: Treasury
"Treasury's assumptions used a number of different economic models and in some cases combined models. Overall it assumed the rate of growth in Aust's GDP, productivity and employment would decline from 2010. In the decade from 2011-12 to 2021-22 Aust's terms of trade were assumed to gradually decline "as key commodity prices (coal, oil, gas, iron ore, non-iron ore, other mining, diesel, chemicals, rubber and plastic, steel and other metals) continue to fall towards levels that reflect longer run demand and supply conditions". After 2021-22, the terms of trade would gradually rise. The modelling assumed Aust domestic gas prices would rise across all states after 2010 except in Tas and the NT where they would initially fall sharply. Graphics showed global energy prices falling sharply after 2010 and then gradually rising "consistent with International Energy Agency projections". Treasury assumed no nuclear power would be available in Aust. "