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, does Treasury modelling assume unlimited global banking and borrowing of permits over time and is it correct that as a result:

(a) the global carbon price is in fact smoothly determined over the next 40 years by a global emissions reduction path determined by a 'Hotelling rule'; and

(b) different countries' emissions allocations in the modelling (based on Cancun 'pledges' to 2020 and a 'multistage allocation rule' thereafter) are in fact irrelevant to the determination of the global carbon price in the model.

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:

The method by which the global carbon price trajectory is determined is described in detail in pages 149-150 in the Strong growth, low pollution (SGLP) report.