“Following the emissions reduction requirements of the Paris Climate Agreement will impose significant and irreparable economic damage without delivering an environmental dividend,” said Daniel Wild, Research Fellow at the free market think tank the Institute of Public Affairs.
Today the IPA released a research report Why Australia must exit the Paris Climate Agreement. The report estimates that the Paris Climate Agreement emissions targets will impose a $52 billion economic cost, over 2018-2030. This equates to $8,566 per family.
“The immutable law of energy policy is this: lower emissions mean higher prices.”
“Each family in Australia will be at least $8,566 worse off under the Paris Climate Agreement, on average. This is at a time when wages are stagnating and the cost of living is rising.”
“$52 billion could purchase 22 new hospitals or pay for 20 years’ worth of the Gonski 2.0 education funding.”
“For families, $8,566 could be used to pay off credit card debt, pay the school fees for a few years, or pay four years’ worth of electricity bills.”
The report finds the Agreement which Australia signed is much different to how it is currently operating. The United States has exited the Agreement. China is unconstrained by the Agreement. And none of the European Union nations are on track to meet their targets.
“The time to exit the Agreement is now. The government must put lower prices and improved reliability ahead of emissions reductions.”
The report finds that the cost of the Paris Agreement more than twice cancels out the benefits of the government’s tax relief, put forward in the 2018-19 Budget.
“The National Energy Guarantee and the Paris Agreement will lead to higher electricity prices. This will damage business investment, jobs growth, and wages growth, and put upward pressure on everyday goods and services,” said Mr Wild.
Download the report – Why Australia must exit the Paris Climate Agreement.