Effects of a carbon price on building and construction

This report considers the possible impacts of the proposed carbon pricing package on the building and construction industry.

This report considers the possible impacts of the proposed carbon pricing package on the building and construction industry. Key points that emerge from the analysis are set out below.

• While not directly liable under the carbon price, and despite not being directly emissions intensive, the building and construction industry will be one of the activities most affected by a carbon price.
• This effect comes about on both the supply and demand sides of building and construction. On the supply side, there will be increases in costs. On the demand side there is likely to be reduced investment activity.
• These effects are likely to increase over time as the carbon price steadily increases.
• It is the long term adjustment implications of the carbon price that will be a major concern for the building and construction industry.

• Effects of a carbon price - CIE Impact of carbon policy on building and construction 31 October 2011.pdf (417KB)