...it seems to me that the major value of the carbon tax is to enable the greener forms of energy production to compete
Chuck, I don't hear this from Gillard, Swan and co. It's more about driving research and development into "new" energy sources, where we can somehow lead the world and reap the benefits of being the first or at least early users of yet to be invented/improved magic. In the meantime the revenue raised will be distributed to those who would be otherwise affected by cost impact.
Swan was on Insiders today talking about "our children's future jobs and new green technologies etc" - an old chestnut and sure heart-string tugger.
Surely it would be stupid to simply artificially raise costs of traditional energy sources so that green alternatives appear competitive? But that's the plan.
Now this concept, at least to me, requires a giant leap of faith that all these steps can work like some geared machine. In the meantime little old Aussie will be showing the world how to do it by making everything more expensive in the short term while we eventually become a nation of Nobel prize winners for creating alternative energy.
If it's all about driving research and development why not simply throw money at it without taxing existing energy? A few billion every year from current reveues is surely possible?
One thing is absolutely certain - the current Labor plans will not impact the global climate one iota - you can take that to the bank.
