Price on Carbon
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The simplest solution
The most logical way of decrease the production of CO2 is to make it expensive. A tax is cheap to administer and hard to avoid. Calling it a price on Carbon Dioxide emission would better explain its' purpose.
If the money was used to subsidise clean energy, and the subsidies on coal were removed, then everything would change automatically.
There is a tremendous amount of innovation bottled up waiting to go. A price difference would allow unleash the floodgates. We could develop much of the technology covered on this website.
A government's role is to provide a level playing field, sloping it at times to help get the best long term results for society. If the government would get out of the way and stop subsidising coal, then private enterprise can easily fill the gap.
An increase in the cost of coal fired power will allow:
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CCS, Carbon Capture and Storage, from flue gas
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Energy storage
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Changes in industrial processes such as cement, and steel making
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Collection of CO2 from the atmosphere
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Electric vehicles
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CSG operators will use as little CO2 as possible to push out methane because at present they have to buy it, but if CO2 had a carbon price, they would inject as much as possible. Source
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Etc....
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YouTube video of Tony Abbott and his confusing positions on a carbon tax.
https://www.youtube.com/watch?feature=player_embedded&v=lJlWyRIflYI#at=46
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Carbon price
Despite political claims to the contrary, research from the OECD finds that 29 countries have higher ‘effective’ carbon prices than Australia.
For example the leader of the Coalition declared ‘the rest of the world was not going anywhere near carbon taxes or emission trading schemes.’ This is untrue.
The Climate Institute February 01, 2013
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The core problem for gas-fired power is that even the newest plants, which offer 60 per cent energy efficiency, cannot compete against standard coal-fired plants currently operating at 35 per cent.
According to Reuters research, an ageing coal plant would still be more than four times more profitable than a new gas power plant.
Source
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Effect of carbon tax on food prices
This is the cost of food as affected by a carbon price of A$24.16 per tonne.
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Carbon tax impact on food prices (carbon price = $24.15tCO2)
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Food item and units
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kg CO2 per unit
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Price before carbon price
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Price after carbon price
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% increase
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Rump steak (1kg)
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3.03
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$19.00
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$19.07
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0.38%
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Lamb loin chops (1kg)
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4.88
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$25.00
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$25.12
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0.47%
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Milk (2l)
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1.45
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$3.00
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$3.04
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1.17%
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Cheese slices (500g)
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1.98
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$6.00
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$6.05
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0.80%
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Butter (250g)
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0.99
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$2.20
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$2.22
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1.09%
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Classic ice cream (2l)
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1.96
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$6.30
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$6.35
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0.75%
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Bread (700g)
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1.04
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$3.00
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$3.03
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0.83%
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Mud cake (600g)
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2.98
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$5.80
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$5.87
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1.24%
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Oranges (1kg)
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1.83
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$4.00
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$4.04
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1.11%
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Apples (1kg)
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1.78
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$5.20
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$5.24
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0.83%
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Bananas (1kg)
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1.78
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$4.00
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$4.04
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1.08%
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Carrots (1kg)
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1.08
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$1.30
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$1.33
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2.01%
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Tomatoes (1kg)
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1.47
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$7.00
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$7.04
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0.51%
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Broccoli (1kg)
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1.11
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$5.00
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$5.03
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0.54%
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Pasta (500g)
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0.63
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$1.60
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$1.62
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0.96%
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Breakfast cereal wheat based (750g)
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2.41
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$3.80
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$3.86
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1.53%
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Eggs free range (700g)
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0.67
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$5.30
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$5.32
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0.31%
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Chocolate block (200g)
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1.38
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$3.90
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$3.93
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0.85%
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Beer full strength public bar (285ml)
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0.64
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$3.85
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$3.87
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0.40%
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Cola (1.25l)
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0.80
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$1.45
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$1.47
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1.33%
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Fruit juice (2l)
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1.84
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$4.40
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$4.44
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1.01%
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Source: Tim Grant – Life Cycle Strategies for emissions data.
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Investment in power stations - World
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Year |
Renewable |
Fossil |
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2004 |
$52 billion |
$250 billion |
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2008 |
$155 billion |
$140 billion |
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2010 |
$211 billion |
$90 billion |
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2011 |
$260 billion |
$40 billion |
Investment in power generation - Australia
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Aust |
Wind |
Solar PV |
Gas |
Coal |
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2011 |
41% |
6% |
36% |
17% |
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Carbon tax revenue
This table provides estimates of the total revenue and the total compensation/assistance associated with the introduction of the carbon pricing package.
Yes, the scheme has the potential to raise significant revenue of $27 billion. But you need to remember the government has already given the coal power stations a billion dollars in compensation before the scheme has even started. Then they’ll give a further $2.054 billion in free permits to coal power stations, plus $9.2 billion free permits to trade exposed industry. This leaves them with almost $15 billion in revenue that they’ll actually get their hands on.
Then the government will provide some considerable cash assistance to coal mines and steel mills, give small business a tax write-off and offer some further support, mainly to manufacturing, to help reduce the impact of the carbon price. This leaves the government with almost $13 billion. This amount completely disappears through tax cuts, pension increases etc. in compensation for households, leaving the government with a net deficit of nearly $2 billion.
Tristan Edis Climate Spectator
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Source: Clean energy future - Aust gov.
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