Australia’s top economists have voiced their support for a transition to net zero and the introduction of a carbon price.
Forty-six of the 58 economists selected by the Economic Society of Australia and surveyed by The Conversation said that Australians will likely benefit from the national economy transitioning to net zero by 2050. Seven economists remained uncertain while five said they disagreed.
On their preferred policy for achieving net zero, 49 of the economists identified an economy-wide carbon price, seven selected government support for the development and rollout of emissions-reducing technology and one chose support for negative emissions technology that draws down carbon and stores it.
None of the economists selected the option of ‘direct action policies to subsidise emission reductions’ as their preferred policy.
“Global action to reduce carbon emissions will adversely affect Australia’s terms of trade and the cost of imported capital, lowering our living standards, unless we respond,” said Ian Harper, dean and director of Melbourne Business School and board member of the Reserve Bank of Australia, in his response to the survey.
“A tax on carbon emissions or an equivalent cap-and-trade scheme is the most efficient policy intervention to encourage consumers and producers to decarbonise their economic choices,” Mr Harper said.
The survey results come ahead of the UN Climate Change Conference (COP26) in Glasgow next month.
Prime Minister Scott Morrison recently confirmed he would attend the conference and is expected to deliver a commitment to net zero.
Australian Ethical CEO and MD John McMurdo recently stated that Australia could become a sustainable top-20 global economy as part of a ‘climate-friendly industrial revolution’.
“A clear vision on zero-carbon industries would inspire Australian and global capital markets, and significant capital allocators such as Australian Ethical, to invest potentially unprecedented amounts back into Australia,” Mr McMurdo said.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
