Munich Personal RePEc Archive

Australia's Carbon Tax: A Sheep in Wolf's Clothing?

Spash, Clive L. and Lo, Alex Y. (2011): Australia's Carbon Tax: A Sheep in Wolf's Clothing?

[img]
Preview
PDF
MPRA_paper_33997.pdf

Download (113kB) | Preview

Abstract

The Australian Government has produced a CO2-equivalent tax proposal with a difference, it is a short prelude to an emission trading scheme that will allow the increasing rate of emissions to continue, while being a net cost to the Treasury. That cost extends to allowing major emitters to make guaranteed windfall profits from pollution permits. The emission trading scheme suffers numerous problems, but the issues raised show taxes can also be watered down and made ineffectual through concessions. Taxpayers will get no assets from the billions of dollars to be spent buying-off the coal generators or other polluters. The scheme hopes to stimulate private investors to create an additional 12 percent in renewable electricity generation by 2020. A serious emissions reducing alternative would be to create a nationalised electricity sector with 100 percent renewable energy within a decade. We explore the difficulties of implementing meaningful greenhouse gas taxes in Australia.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.