Australia should follow the successes in Europe with a carbon tax
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It is to be hoped the discussion will soon turn from the rather nebulous concept of a carbon price to actual mechanisms – and for that the most appropriate tool is a carbon tax.
No need to be afraid of a tax on carbon, Sydney Morning Herald, Fiona Armstrong, September 4, 2010 – The most significant policy issue in the deal struck between the Australian Greens and the Australian Labor Party was that of climate policy.
Agreement between the parties that a carbon price is paramount to tackling carbon pollution signals a restoration of a significant climate policy agenda in Australia, since earlier efforts were so carelessly abandoned by Kevin Rudd last April. The agreement on a carbon price is well overdue; given the overwhelming recognition that a carbon price is central to effective emissions reductions……
Nothing has changed since Sir Nicholas Stern’s landmark report in 2006, in terms of the need for a carbon price; only the urgency of its application has increased.
Achieving this in Australia, however, has been difficult to date – the Carbon Pollution Reduction Scheme (CPRS) was a miserable attempt at pricing carbon, and its flawed approach (rejected quite rightly by the Greens and others) with inadequate targets, excessive use of offsetting and unnecessary compensation to polluters, has contributed to the discrediting of emissions trading as the preferred option for pricing carbon internationally……
It is to be hoped the discussion will soon turn from the rather nebulous concept of a carbon price to actual mechanisms – and for that the most appropriate tool is a carbon tax. Supported by most environmental economists (and others such as Nobel Laureate Joseph Stiglitz and Jeremy Sachs), a carbon tax is already in place in many European jurisdictions where it has reduced emissions while maintaining, even improving in some instances, economic productivity.
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