Australia has the opportunity to surpass other rich countries to become more prosperous than ever before in a post-carbon world, according to the eminent economist Ross Garnaut.

Australia could become "the superpower of the post-carbon world economy", said the former economic adviser to prime minister Bob Hawke and author of the Hawke government's strategy for economic engagement with Asia.

Opportunities for Australia: Professor Ross Garnaut. Credit:Andrew Meares

The Australian political debate has been preoccupied with the cost of moving to a lower-carbon economy, but new work by Professor Garnaut finds that the economic costs would be far outweighed by economic gains.

"Embrace the post-carbon economy, and Australia will greatly expand new minerals processing and chemical manufactures, way beyond the limits of coal, gas and the industries they supported in the past," he said in a Melbourne University lecture on Wednesday night.