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Cost of subsidies confuses carbon price debate
letter published in The Australian, 18 September 2010

Your editorial rightly argues the importance of assurance on coal (“Our politicians need to provide certainty on coal”, 17/9).

One thing can be certain: an attempt to start setting a price on carbon will add to already existing uncertainty because it will be impossible to predict  decisions by governments not only on the price of carbon but on the subsidisations of alternative energy sources.

Nor is there any escape from the reality that consumers would have to pay, either through higher electricity prices or through higher-than-otherwise taxes to pay for subsidies.

Des Moore, Director, Institute for Private Enterprise, Melbourne ,Vic

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