Will tax cut carbon, how much and at what real cost?
letter published in The Australian, 13 June 2011
Graham Lloyd draws attention to the Productivity Commission’s conclusion that renewable energy programs cost an enormous amount and have a limited effect in abating emissions (“End renewable schemes now, say biggest emitters”, June 11/12/6). Indeed the PC’s analysis extends more widely in concluding that despite the major emitting countries incurring “material effects on costs”... “few appear to have had significant impacts on abatements”.
As Australia is already in the middle range of abaters surveyed by the PC, this means the implementation of a carbon tax would put our policies well out in front of average policies in major emitting countries. Indeed, as countries with whom Australia competes as a supplier of resources have very limited emission reduction policies, we might then become the lead abater in the world.
Is that what the Gillard government is aiming to take to the next election?
Des Moore
South Yarra Vic