The proposed framework for Australia’s solution to carbon emissions penalises the production of carbon emissions. Since most other countries are not implementing such schemes, this makes locally produced products more expensive. In reaction to higher domestic products, consumors will buy more imported products. Not only does this result in the collapse of Australian industries but also will not decrease carbon emissions – only shift them overseas where carbon emissions are not capped.

Internally carbon pricing consumed goods and services is a possible solution to this problem with many advantages. Charging the Australian consumer for the carbon emissions of the things they use can curb global carbon emissions while keeping economically competitive globaly. Carbon emissions are curbed because whether a product generating carbon emissions came from China, Fiji or Australia, more tax is charged for more carbon emissions – slowing demand and also funding environmental rehabilitation. On the other hand, Australia remains competitive because export prices remain on a level playing field, untaxed when sold offshore.

Keep in mind that the production model would allow Australia to import aluminium, steel and other energy-intense products from carbon-inefficient sources like China, no carbon prices would be passed onto the consumer. Although these producing countries are releasing the emissions, they are certainly not the only consumers. Wealthy western countries account for major exports from the highest emitting countries so shouldn’t they be penalised for the emissions their demand has produced?

This approach to solving global warming though carbon capping shares common disadvantages with the currently-accepted carbon production tax approach: A hit to Australians’ lifestyles. We might have to use more public transport or cycle more while being more conscious of lights and electrical appliances we’ve left on. Even if global warming isn’t real, sustainability is a great thing.

… from a radio interview with:

Geoff Carmody
Principal Geoff Carmody Associates Co-Founder Access Economics

Martijn Wilder
Baker & McKenzie

Entire Source: ABC Radio National Saturday Extra 2008-08-09 (30:00 – 45:00)
Snippet Mirror:  TimCinel.com [Saturday Extra 2008 08 09 - Consumer-Based Carbon Tax]

The Federal Government decided to ease financial pressures on motorists and the economy by lifting the fuel excise tax as the carbon costs are factored but will be reintroduced over the next 5-10 years. Gradually integrating the new costs into fuel, the blood of our economy, is obviously a move to keep control inflation and the economy.

While it’s important to keep the economy healthy, the whole point of the carbon emissions trading scheme is to keep the environment healthy. It’s common knowledge that public transport is much greener than personal transport yet Federal and State governments continue to pump significantly more into road infrastructure, as well as providing financial incentives to motorists.

Carbon neutrality, sustainability and the erradication of global poverty will require a change in our lifestyle – we can’t continue wasting energy at the rate we do. At least until we master cold fusion…

New Leadership, Old Mentality