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Strong Growth Low Pollution - modelling a carbon price - supplementary material

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The Strong Growth Low Pollution (SGLP) report is based on an integrated suite of models that ensure a consistent set of projections at a global, national, sectoral and household level. The suite of models ensures sufficient detail in key sectors and provides insights into the likely transformation of the Australian economy under carbon prices. The supplementary material, available below, provide further details of the specific sectoral modelling undertaken for the report.

Modelling of the electricity generation sector is important for understanding the effect of carbon pricing on the economy. For this reason two specialist consultants, ROAM Consulting and SKM MMA part of the Sinclair Knight Merz group have provided detailed modelling of the evolution of the Australian electricity generation sector.

The detailed household impact analysis of the carbon pricing contained in the report is based on Treasury estimates from the PRISMOD models. Both ROAM Consulting and SKM MMA also provide estimates of household electricity price impacts using a different methodology. All methodologies produce consistent results, indicating an expected increase in electricity prices of around 10 per cent for household electricity prices with the introduction of the carbon price.

These documents form part of the Strong Growth Low Pollution – modelling a carbon price initiative.