carbon tax - unintended consequences, page-6

Butcherboy,
This guy operates a small foundry on the outskirts of a capital city. The business employs about 40 people. They have done all they can to be energy efficient.

They have modern machinery. There is no practical alternative to electricity for cast steel production.

There are no further technologies available. The specific heat and melting point of iron are fixed. The electric efficiency of the induction furnace is fixed.

His variables are; Labour cost, Energy Cost, Scrap cost.

Perhaps the answer is that Australia needs to get out of these energy intensive industries to reduce our carbon footprint. The chaps at the foundry may have to be told their jobs are to be sacrificed. They may be disappointed.

bacci