Carbon tax has 'merits'

1 JANUARY 2003

The country's top economic reform agency has called for the introduction of carbon taxes as a way to cut greenhouse emissions. The Productivity Commission, the Australian Government's principal review and advisory body on microeconomic policy and regulation, last week submitted the proposal to the Prime Minister's task force on emissions trading. Dr Roderick Duncan, lecturer in economics at Charles Sturt University (CSU), says if we are serious about cutting emissions, a carbon tax is inevitable. “But to reflect the true cost of our energy, we are going to have to drastically increase the price of petrol and electricity. People say they are very concerned about global warming, but when I tell them we could triple the price of energy, then they become a lot less enthusiastic.”

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