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2010-07-28

Forget people's assembly and get on with carbon pricing

Comments on Robert Gottliebsen “Why carbon consensus won't work” 28/07/2010, http://www.businessspectator.com.au/bs.nsf/Article/Climate-the-heat-is-on-pd20100728-7RTSE?OpenDocument&src=rot
It is correct to say that the community consensus is unlikely to work. So the government is either playing delaying tactics or does not understand it.

It should not be too difficult to solve the issues involving mainly the distribution of proceeds from either a carbon tax or caps you identified, through the following measures.

1. Adopt an explicit carbon price on emissions.

2. Distribute the revenue to residents/consumers on an equal per capita basis, because they cannot pass the higher costs associated with the carbon price, unlike businesses that can at least partially do that. Such a scheme should purely be a mechanism to change the relative price and revenue neutral.

3. No revenue should be pocketed by the government.

4. Give no or little subsidies to businesses including power generation companies. It is gradual process and most businesses should be able to adjust. No favour and special treatment to any businesses. Any subsidies should come from a reduction in renewable expenditure by the government.

5. Impose a carbon equalisation tax on imports and reimbursement on exports, but do it in a simple fashion.

6. Return the department of climate change business to Environment and remove redundant personnel.

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