Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

The 2011 Government report Strong Growth, Low Pollution: Modelling a Carbon Price provided details of modelling of the effect of a carbon price on the economy. One of the scenarios modelled in that report, labelled ‘core policy’, was calibrated to achieve a carbon mitigation target of 5 per cent below 2000 levels by 2020 and 80 per cent below 2000 levels by 2050. Given the policy parameters and macroeconomic assumptions considered, the modelling projects gross output of the iron and steel industry will increase by 9 per cent by 2020 and by 79 per cent by 2050 with carbon pricing, while the iron and steel industry will account for 0.3 per cent of total employment in both 2020 and 2050.