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

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  • Spash, Clive L.
  • Lo, Alex Y.

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.

Suggested Citation

  • Spash, Clive L. & Lo, Alex Y., 2011. "Australia's Carbon Tax: A Sheep in Wolf's Clothing?," MPRA Paper 33997, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:33997
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    File URL: https://mpra.ub.uni-muenchen.de/33997/1/MPRA_paper_33997.pdf
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    References listed on IDEAS

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    Cited by:

    1. Lo, Alex Y. & Spash, Clive L., 2012. "How Green is your scheme? Greenhouse gas control the Australian way," Energy Policy, Elsevier, vol. 50(C), pages 150-153.
    2. Hasanbeigi, Ali & Price, Lynn & Lin, Elina, 2012. "Emerging energy-efficiency and CO2 emission-reduction technologies for cement and concrete production: A technical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6220-6238.
    3. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2017. "Cooperation in the climate commons," GRI Working Papers 259, Grantham Research Institute on Climate Change and the Environment.

    More about this item

    Keywords

    greenhouse gases; taxation; emission trading; climate change; regulation; renewable energy; Australia;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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