REDUCING AUSTRALIAN ENERGY SECTOR GREENHOUSE-GAS EMISSIONS

In this paper the policy implications of reducing greenhouse gas emiss ions in the Australian energy sector are examined. Detailed model anal ysis indicates that the greenhouse target adopted by the Australian go vernment can be met but only with substantial change in the structure of the energy sector, achieved at considerable cost. The change is lik ely to be concentrated in electricity generation. Large changes are im plied in other areas as well, particularly the use of renewable resour ces. The changes in Australia's energy sector have important macroecon omic implications The impacts are less pronounced for scenarios with l ess severe targets in line with the UN Convention on Climate Change.