Keywords: climate change, dynamic modelling, Australia, ecosystem, economy, emission abatement
Climate change, economic growth and sustainability: issues, Australian dynamic integrated general equilibrium model and policy options
The present study is an example of the potential for developing a climate change and economic growth model and policy analysis for a particular country. It develops a dynamic general equilibrium model of climate and the economy for Australia, as a non-cooperative differential game, to address the global warming and growth concerns and issues faced in Australia. It presents the current and future forecasts and implications for climate, economic growth and policy in the Australian economy. The results show that the benefit of emission abatement is higher than its cost. As there is no such long-horizon growth model and forecasts for the Australian economy, the results of the present model are useful in understanding the long-term dynamics of the ecosystem and the economy.