I hope this is the most appropriate place to put this. It is rather difficult amongst a number of similar thread. I've only had a quick look at the first 6 pages of this thread.
muso wrote on Nov 9
th, 2009 at 7:36am:
A Carbon Tax would work better than emissions trading. As I've said before, emissions trading is too prone to abuse.
Malcolm Turnbull has quite a plausible position on this. If he had caucus support, I think the Libs could have come up with a better scheme than the ALP.
I've seen the ALP's Department of Climate Change in action in Canberra, and wasn't too impressed. Enough said.
When you're given 2 working days to review a document that's about 140 pages long, it shows how much they are rushing headlong into this and making mistakes along the way.
What follows is my understanding of the carbon tax vs. emissions trading debate.
We have known the ETS is a cap & trade system for a long time now.
Which of course means small business will do their job, sell their permits and big business will pollute just as much as they do now as they'll have all the permits. It essentially becomes a monopoly or an oligopoly.
Small business could then make a mistake and actually produce more carbon than it should but then get fined (I'm assuming a fine is an option for a breach) because there are no permits left to buy (trade) since big business has them all and isn't willing.
The small business is then forced out of the market place and goes out of business.
This is of no concern to big business. Big business puts the prices up to pay for new costs as they have always done.
The consumer pays more. Making ends meet becomes more difficult.
Sounds like a Tax. Not a tax per se but this is why it is broadly called a tax.
The concept of a carbon tax is actually simple and easy to understand. It is broad based and applies equally to all. The CIS have outlined quite nicely how a carbon tax would work. I think it would be more saleable in the broader electorate which thus far has confessed it does not understand the ETS.
As far as I can tell, the only reason we're introducing an ETS is because most of the rest of the world is and it is easier to trade like with like (ETS & ETS) instead of like with unlike (ETS & Carbon Tax).
Feel free to correct the errors and erroneous assumptions I have made with facts. Some of it may have all ready been discussed.