Carbon price and Australian manufacturing

Comments on Alan Kohler “Carbon will crush manufacturing”, 25/02/2011, http://www.businessspectator.com.au/bs.nsf/Article/Carbon-will-crush-manufacturing-pd20110225-EDRPG?OpenDocument&src=sph

Alan, this is a rather simplistic and alarming view of what might happen.

Comments on by Ian Higgins and Andrew Punch are useful alternatives, even though the government may have not carefully thought through about the necessity of trade neutrality.

Further, Australia is not along to have a price on carbon and many other major economies have or will have an effective carbon price. The overall impact on Australian manufacturing industry is not necessarily that doomed as you put it.

It is not just a structural adjustment in Australia alone, but in many countries.

How they affect the comparative advantages is equally unclear yet.