Final answer:
The Australian government may boost investment in renewable energy to increase GDP through capital goods, address environmental concerns, and improve energy security. Additionally, the sector’s growth may create new jobs and attract skilled workers.
Step-by-step explanation:
The Australian government would decide to increase its investment in renewable energy technology and machinery to enhance economic growth and address environmental concerns. Increased investment in renewables is viewed as a strategic step to both reduce carbon emissions, which benefit the environment, and diversify energy sources, which enhances energy security. Moreover, investing in renewable energy technology and machinery can aid in increasing Gross Domestic Product (GDP) through an investment in capital goods. This is because the implementation of renewable infrastructure can stimulate growth in various related sectors including manufacturing, installation, and maintenance services, contributing to the nation's overall economic output.
Furthermore, technological advances could improve the efficiency of renewable energy, prompt domestic innovation, and reduce dependence on foreign oil, aligning with the global shift towards sustainable development. The renewable energy sector also has the potential to create new jobs and attract highly skilled workers, representing an investment in human capital.