http://www.theaustralian.com.au/national-affairs/climate/carbon-levy-has-failed-...

THE carbon tax promised by the Gillard government is unlikely to have a significant effect on either the economy or the use of energy.

But there is some concern that the transition to an emissions trading system in three to five years time could bring a dramatic jump in the carbon price.

The experience in both Europe and New Zealand shows that simply putting a price on carbon has had little influence on behaviour.

Australia's leading climate change economist Warwick McKibbin said it had been established that the only carbon abatement in Europe had been the result of regulation and subsidies, which had boosted the use of solar and wind power.

"A carbon price is just a pure cost and gives you little incentive to avoid it unless you know what will happen in the future," he said.

He said a carbon tax was preferable to an emissions trading system, because it conferred greater certainty, but it was really only an interim step

The chief economist with the New Zealand consultancy Infometrics, Adolf Stroombergen, said the introduction of a carbon emissions trading system 18 months ago had brought some increase in energy prices but had little influence beyond that.

"It has added 3c a litre to the cost of petrol, but we'll probably see that go up 10c a litre over the coming week because of the Middle East. People have got used to prices going up and down," he said.

The Commonwealth Bank's chief New Zealand economist, Chris Tennant-Brown, said environmentalists would regard their scheme as "a bit of a disaster", with the change in price too small to generate change in behaviour.

Maqqa wrote on May 5^th, 2011 at 2:20pm:

So us Abbott followers arent so dumb after all. But we knew that didnt we.

I wonder if people do realize that no matter they do, nothing will change in their lifetime anyway?

What a load of old cobblers this whole climate change business is.

Bollox to it.

My predominant argument against the carbon tax has always been that it affects the economy negatively while acheiving none of its stated goals. That makes it a truly pointless policy.

Dsmithy70 wrote on May 5^th, 2011 at 3:23pm:


Whilst clearly self-centred, his attitude is no wrong. A carbon tax is 100% guaranteed to have zero effect on emissions. No country that has tried it has had any success whatseover. That argument alone is enough to through the carbon tax away. You might as well tax evaporation. It has more effect on global warming than CO2.

gizmo_2655 wrote on May 5^th, 2011 at 3:37pm:


So when was he anointed as "Australia's leading climate change economist"?

Most people wouldn't dare load someone up that way.

And I'm glad you mentioned that he is on a par with someone else ... which of course suggest he ISN'T "Australia's leading climate change economist".

What will Abbotts plan achieve giving billions of dollars to the major polluters for nothing in return????????????????????????????????

gizmo_2655 wrote on May 5^th, 2011 at 3:37pm:

gizmo, you can't be trusted... we've already sorted this out alright mate.

Don't make me have to tell you again OK! Good son!