A new study from the University of Queensland’s Global Change Institute confirms previous modelling from the federal Treasury that Queensland will be hardest hit by the carbon tax and will experience the largest increase in electricity prices (Study sheds light on household impact of carbon price):
Tasmanians, with a relatively low carbon footprint, are set to gain significantly from the carbon price once tax and pension changes are factored in, while Queenslanders — heavily dependent on coal to generate electricity — will wear the biggest increase in power prices, according to economic models run on “supercomputers” at The University of Queensland.
Contrary to claims by many commentators that Federal Treasury has underestimated the impact of the carbon price on household budgets, the study’s estimate of an average 8.9 per cent increase for retail electricity prices in the five eastern states, due to the carbon price, is below the 10 per cent rise predicted by Treasury.
The Global Change Institute estimates that, at the starting carbon price of $23/tonne, electricity prices will increase 10.4% in Queensland, compared with the national average of 8.9%.
Brisbane Times coverage of the UQ study is here: