Increasing the carbon price’s emission reduction target from 5 per cent to 25 per cent by 2020 would have a marginal impact on the economy, according to the latest economic modeling released by WWF-Australia.

The analysis, conducted by London-bbased Vivid Economics in conjunction with Monash University, found that increasing the emission reduction target to 25 per cent would only result in a 0.01 per cent drop in the GDP.

“The economic costs of a 25% target are four times lower now than estimated back in 2009 when the Government and Opposition first reached bipartisan agreement on an unconditional cut to emissions of 5%,” WWF spokesperson Will McGoldrick said.
“Much of the 25% reduction would be achieved by buying cheaper-than-expected overseas abatement permits.
“This is the upside to the low carbon price – we can achieve much more for the same impact on GDP.”

“If we can achieve a target that is five times stronger for virtually the same cost to GDP then it’s a no-brainer – we’d be mad not to take that opportunity. It’s smart for the planet, it’s smart for our future, and it’s smart for Australia’s world standing.”