Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Hansard source

I am of course aware of the modelling that has been done by Sir Nicholas Stern. The Treasury, along with economists around the world, have assessed that modelling. There have been criticisms of a number of the assumptions which underpin that research. I am not even aware that the UK government has accepted all of the findings of that research. In fact, in meetings that we will be having today with Sir Nicholas Stern, we will obviously be exploring that.

There is some disagreement about discount rates, some of the suppositions and the technological changes. There is also quite considerable disagreement about what national effects there would be. To my knowledge there has been no economic modelling done as to the effect on particular countries. All of the economic modelling is done in relation to global effects. That is obviously because it is very hard to disaggregate in relation to individual countries—a point that I have made previously in this House and a point that the Treasury have taken into account.

Having said all that, the important thing to bear in mind is that countries should do what they can to reduce carbon gas emissions. I make the point that this country is probably one of the few countries that is on target to meet its Kyoto target. There is a lot of talk about signing Kyoto, but those countries that have signed Kyoto are some of the countries that are furthest away from meeting their targets. One thing about Australia is that when we sign something we like to keep to it. Even though we have not ratified Kyoto, we are well on the way—

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