There seems some debate on HC as to whether carbon pricing is a...

  1. 1,110 Posts.
    There seems some debate on HC as to whether carbon pricing is a pricing mechanism or a tax.

    If people remember, The Ag Forum, PM commits to a carbon price in 2011, Mick Keogh - Monday, November 29, 2010

    the Prime Minister Julia Gillard has previously committed to attempt the implementation of a carbon price for Australia in 2011. While the speech did not commit to a specific mechanism (either a carbon tax or an emissions trading scheme), the statement certainly provides a strong message to the agriculture sector (variously attributed with 16 or 25% of national emissions) to decide on a preferred approach and prosecute that approach with Parliamentarians.

    IMHO, it is semantics to argue whether this is a price or a tax. Regardless, it IS an additional impost. That being said, we may argue whether it is a worthwhile impost or not. For example, the government could use a carbon impost to guide people to less production of carbon dioxide or methane, although whether that is feasible (e.g. teaching animals to stop belching) remains moot. Then there is the universal law of unforeseen consequences; e.g. reducing the animal herd in Australia, will simply send up both meat prices, and prices for alternative foods, demand exceeding supply.

    The same could be said for electricity supply using coal.

    Hence, I wonder if this carbon price or tax has been thought through. In effect, it is a selective GST on energy consumption.

    I have no problem with that, if only the government says this is what it wants to introduce in order to finance a Green Fund to mitigate green house gases. In that case, we can sensibly debate the merits of this proposal. But IMHO, dressing it up as "carbon pricing" seems too much.




 
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