10 Aug '12, 12pm
Drumbeat: August 10, 2012
Carbon tax best approach to curbing global warming I have to disagree. Politicians won't set the tax high enough to achieve deep emissions cuts so it becomes largely a feelgood exercise. Carbon tax is revenue neutral so the proceeds are repaid via income tax cuts and welfare increases. Electricity, cement etc go up in price but consumers have more in their pocket. In theory consumers then switch to lower carbon products. Maybe not. Better I think is cap is cap and trade with the scams removed, notably free or 'grandfathered' permits and worthless carbon credits. The CO2 cap should shrink by say 2% a year. Again the problem is politicians... do they have the cojones to make it tough? The Australian carbon tax was set at $23 per tonne of CO2 or equivalent emitted. From the very start some of the worst polluters like steel mills and coal fired aluminium smelters were 94.5% ex...