Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

asked the Minister representing the Treasurer, upon notice, on 18 August 2011:

With reference to the Treasury Carbon Tax modelling, Strong growth, low pollution: Modelling a carbon price, and specifically Table 3.5 (Global headline indicators) on p. 40 of the Treasury modelling:

(1) Why does the level of actual emissions in 2010 differ across the 3 scenarios.

(2) Is it correct to infer from the data in this table and elsewhere that the Treasury modelling envisages a real AUD/USD exchange rate of around $1.07 in 2010, rising to around $1.14 in 2020 and then dropping back to around 76c by 2050.

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

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

(1) The international baseline scenario represents a world where only international abatement policies in place prior to 2008 are included. In contrast, the global action scenarios include abatement policies enacted since 2008 and assumed to take place in future. These policy differences explain the difference in emission levels for 2010 reported in Table 3.5 of the Strong growth, low pollution (SGLP) report.

(2) Consistent with the 2011-12 Budget, the Australian exchange rate is assumed to be 107 US cents in 2011 12 in the scenarios explored in the SGLP report (see page 59). The implied Australian exchange rate in the core policy scenario outlined in the SGLP report falls over time to maintain Australia's external balance, responding to movements in the terms of trade, trade volumes and income flows.