Queensland releases carbon price impact findings
The Queensland State Treasury has released its Carbon Price Impacts for Queensland statement, in which Treasury outlines the projected affects the tax will have on the state’s economy.
The report is an assessment of the impacts of the Australian Government’s Securing a Clean Energy Future (CEF) plan on the Queensland economy, Budget and Government- owned electricity generators (Gencos).
Key findings of the report as follows:
- gross state product (GSP) is estimated to be 0.4 per cent lower than it otherwise would have been by 2019-20, and 3.5 per cent lower by 2049-50. However, the growth of the Queensland economy is still expected to be strong, with average annual GSP growth (real) of 3.5 per cent to 2019-20;
- the net cost to the State budget is estimated to be between $251 and $360 million per year over the forward estimates period, totaling $1.2 billion to 2015-16;
- the reduction in the economic value of coal-fired Genco assets is estimated to be $1.1 billion ($640 million net of improvements in the value of gas and hydro assets); and
- total Queensland emissions are expected to be around 13 MtCO2-e lower by 2019-20, and 120 MtCO2-e lower by 2049-50.
“While there are some revenue benefits to the State Budget from the carbon price, net revenues are expected to fall by between $103 million and $168 million per annum,” the report finds.
The fiscal losses represent a loss of total budgeted revenues of between 0.22 per cent and 0.34 per cent over the estimates period.
The report also finds that carbon price is expected to increase the overall cost of providing State Government services by $148 million in 2012-13, increasing to $198 million by 2015-16 after the emissions trading scheme starts.
The full report can be found here