Sunday, 15 June 2014

The Carbon Price is working fine thank you very much.

As the KOUK shows the carbon price is doing its job very well.

As anybody who understands economics if you increase the price of something. (particularly if it is an externality thus covering all costs to society) then demand will fall. And fall it has.

( I am not surprised some political partisans have conflated a price on carbon with a tax on carbon. They didn't say an ETS with a fixed price was a tax when Howard proposed it nor when it was agreed to by Rudd and Turnbull but apparently all was forgotten when Gillard imposed it!)

Volumes have fallen as you might expect. Incidentally someone might have to point out to Sinclair Davidson that the ABS use seasonally adjusted data which is adjusted for inflation! He doesn't understand this nor do his readers!

If you are concerned about climate change then you would allow the market to change things like our ETS has done. you would do this through either a price on carbon ( an ETS) or a tax on carbon. if you did not care about climate change then you would not have either!

As an added bonus see Lenore Taylor. Thanks Steve from Brisbane