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Australia Repeals Carbon Tax
schwit1 notes that the Australian government has repealed a controversial carbon tax. After almost a decade of heated political debate, Australia has become the world's first developed nation to repeal carbon laws that put a price on greenhouse gas emissions. In a vote that could highlight the difficulty in implementing additional measures to reduce carbon emissions ahead of global climate talks next year in Paris, Australia's Senate on Wednesday voted 39-32 to repeal a politically divisive carbon emissions price that contributed to the fall from power of three Australian leaders since it was first suggested in 2007.
As an Australian, I am bitterly disappointed in my Government. Whilst the rest of the world is ramping up their climate protection measures, our government is ramping up their BIG Industry protection measures. This is the same government that believes that wind farms are an ugly blight on the landscape (and attempting to block many new farms) whilst allowing large coal mines to go ahead. Because a very quiet white propeller on a pole making no pollution is much more horrible to look at that a giant hole in the ground with dozens of house sized trucks dragging out overburden and dumping it in a giant dirty pile.
If you are worried about your access to coal is going to be reduced because your own Government is closing coal mines, don't worry! you can just come and buy a freighter load of coal for less than it costs to remove it from the ground!. And again, don't worry! the trucks used to extract the coal will have all the modern pollution preventing technologies applied to them.. so the environment will be protected.
Outside of the government there is an enormous ground swell of alternative energy research and technologies being installed by Joe Average in their own house.. Much to the governments disgust
The entire idea is that businesses will strive to become more efficient such that they produce less pollution so that they'll be taxed less.
But because such penalties impact all businesses in whatever country is collecting them, it won't really change things - because all of those businesses will simply pass along the new government-mandated increase in their overhead along in the form of higher prices. To the businesses in question, it just goes in one door and out the other. You want to use the heavy hand of the tax collector to damage people's behavior in a way that makes them go out less, drive less, spend less, do less? Tax citizens directly, with a very special line item they can't miss, that says "carbon tax, because you exist" - and they'll act. Well, mostly they'll act to elect people who will undo that tax, but they'll act.
Don't disappoint your bird dog. Go to the range.
How do you recommend governments act to reduce carbon emissions?
The same way Ronald Regan and the Iron Lady acted to reduce sulphur emmissions that cause acid rain, international cap and trade treaty. Cap and trade is a market solution proposed and implemented by the founders of the neo-conservative movement, that has actually worked as advertised. The problem today is that influential "conservatives" are sitting on coal mines that could easily become stranded assests ten years from now. Funny how the politics turns itself upside down if you watch for long enough.
And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
But because such penalties impact all businesses in whatever country is collecting them, it won't really change things
You are talking about tax incidence but you don't have the logic correct. We ALREADY are paying for whatever cost carbon pollution has but it is spread out equally among all people regardless of their use of technologies that rely on carbon emissions. There is no direct incentive for anyone to worry about emitting less carbon. A tax would create a direct economic burden on those who use more carbon which which in turn will motivate those who use more to try to find ways to use less. If you get more benefit from carbon emission (like a power company or a heavy consumer of electricity) then you should have to pay more of the burden. As it stands each of us has to pay for the effects of carbon pollution in an amount unrelated to the amount we generate.
because all of those businesses will simply pass along the new government-mandated increase in their overhead along in the form of higher prices.
They already are passing along the cost, just not directly. Instead of paying for it directly, we pay for it through environmental effects. Climate and the resulting weather changes affect crop yields, business patterns, healthcare, etc all of which have very real and measurable costs. But the cause of those costs has zero incentive to mitigate the effects of carbon pollution because they do not have a direct economic cost of their actions. It's basically the Tragedy of the Commons, writ large.