This Issues Paper offers a comparison of the costs of emission reduction in Australia relative to the potential damages from climate change under current policy settings.
Overall, the costs of emissions reduction are far less than the damages of inaction – even with modelling underestimating damages from climate change and overestimating the costs of emissions reduction.
This paper finds that transitioning to a low-carbon economy is sound economic development: even when the benefits of reduced emissions are ignored, the economic benefits of a transition to a low-carbon economy easily outweigh the costs.
The management of risk due to exposure to the increasing impacts of climate change is now a central issue for reserve banks, the financial sector and business around the world.
978 0 7340 4958 2
MSSI Issues Paper 12
Melbourne Sustainable Society Institute, University of Melbourne 2019