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Greg Hunt exposes Lib's economic ignorance (Read 10998 times)
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Greg Hunt exposes Lib's economic ignorance
Dec 1st, 2006 at 11:17am
 
EDIT: THIS ARTICLE NOW LINKS TO HERE

Greg Hunt, federal Liberal MP and parliamentary environment secretary, has revealed the Liberal party's ignorance of basic economics in an attack on the Labor party's proposed carbon tax. He claimed that carbon taxes would not work because energy demand is not price sensitive, while at the same time claiming the increase in price would make energy prohibitively expensive to some consumers.

The tax would not work because energy demand was not price-responsive, and would be prohibitive to pensioners and the poor, he said.

He appears to be unaware of the vast resources available to industry and the public to reduce greenhouse emissions without significantly harming productivity. If electricity consumption were as insensitive to price as he claimed, this would not make a carbon tax inappropriate. In fact, it would make electricity a good choice for a revenue raising tax. Either way, it makes economic sense to apply the tax. Also, there are plenty of other man made sources of carbon emissions and to suggest that they are all price insensitive in absurd.

He also implied the possibility of not passing the cost of cleaning up our electricity supply onto consumers - effectively subsidising it when we should be cutting back on it's use. Finally, he suggested a carbon trading system - a system that would cause electricity prices to rise just as much as a tax (of equal effectiveness), but not offer the opportunity to lower other taxes. Instead, the extra cost of electricity would go into lining the coffers of oil and coal companies.

It looks like the Labor party has the most economically rational policy on this issue, while the Liberals are stuck protecting the interests of big energy companies and trying to confuse the public about the implications of the available options to reduce our emissions.

The article from the smh:

http://www.smh.com.au/news/National/Carbon-cleanup-could-hike-power-bills/2006/12/01/1164777754081.html
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« Last Edit: Jan 9th, 2007 at 7:09pm by ozadmin »  

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SA leading the way on GHG's
Reply #1 - Dec 6th, 2006 at 5:26pm
 
There is currently no legislation in Australia to cap greenhouse emissions. The SA parliament is debating a bill to mandate a reduction in emissions by at least 60% over the next forty years. Only 20% of electricty produced will come from renewables, so presumably a lot of the cuts will happen through reducing consumption and increasing efficiency. Sounds like they've done their research.
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Re: Greg Hunt exposes Lib's economic ignorance
Reply #2 - Dec 6th, 2006 at 5:49pm
 
This is what we are up against. Notice how the PM conveniently shifts between emissions trading and carbon taxes, and tries to shift attention to third world countries. He claims that reducing our emissions would have no impact on the world's economy or emissions, while at the same time claiming dire consequences for our own economy. He blames third world countries while ignoring the fact that Australians are the highest per capita emitters of greenhouse gasses on the planet. He talks about job losses from carbon taxation while completely ignoring the potential to reduce income taxes. This sort of scaremongering could have come straight from the PR department of a major oil or coal company.

http://www.pm.gov.au/News/media_releases/media_Release2081.html

send in your response here:

http://www.pm.gov.au/email.cfm

For example:

and eventually devastate vital export industries such as coal

Export industries would be exempt from carbon taxes or trading limits as you only tax the carbon emissions from within your own country. It would be impossilbe to track whether the carbon emitted from exported coal was sequestered for example, or how efficiently it was burnt.

The PM's 'fuzzy logic':

The emissions trading plan released by the Labor states and territories would impose significant costs on the Australian economy and have zero impact on global emissions and climate change.

How can it have significant costs if it has zero impact?

This is the response I sent in:

I refer you to your press release here:

http://www.pm.gov.au/News/media_releases/media_Release2081.html

You left out the great option of using carbon taxes and reducing income taxes or the GST. This would remove most of the economic cost. Furthermore, we are the highest per capita emitters of CO2 and one of the wealthiest countries so it is not unreasonable for us to bear some of the cost. You cannot claim dire consequences for our economy while at the same time claiming no real reductions in global greenhouse emissions. It is time you took global warming seriously and a green tax shift is the least costly way to do reduce our emissions. It would probably even improve our economy. Stop this rediculous scare campaign and be honest with the Australian people.
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Re: Greg Hunt exposes Lib's economic ignorance
Reply #3 - Dec 7th, 2006 at 6:38pm
 
I have added another page about this:

http://www.ozpolitic.com/green-tax-shift/ridiculous-propaganda-john-howard.html

I also put it on the site home page, for the time being. I think this is something worth writing to your various letters to the editors about (hint hint). Feel free to copy and paste whatever bits you want for letters to the editor.
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Re: Greg Hunt exposes Lib's economic ignorance
Reply #4 - Dec 10th, 2006 at 4:12pm
 
no surprise that the taskforce consists of "bureaucrats and resource industry figures"

PM launches emissions trading taskforce

http://www.smh.com.au/news/National/PM-launches-emissions-trading-taskforce/2006/12/10/1165685538179.html

Prime Minister John Howard has announced a taskforce to inquire into Australia's possible involvement in an emissions trading scheme.

He said the world needed to find practical solutions to climate change.

The taskforce of bureaucrats and resource industry figures, chaired by Mr Howard's department secretary Peter Shergold, will investigate how Australia might be involved in an emissions trading system that involved other major nations.

The move comes as the government attempts to seize the initiative on the climate change debate, after being stung by polls showing most voters are dissatisfied with its response to global warming.

.........

Greens leader Bob Brown on Sunday condemned the inquiry as a sop to the coal industry.

He said Mr Howard's taskforce avoided the "logical first step" of setting up a domestic carbon trading system and placing a carbon tax on polluters to fund solar power.

"The inquiry is stacked with miners, who he says are Australia's natural advantage," Senator Brown said.

"The prime minister is Australia's natural disadvantage.

"He has made a choice between the coal industry and his grandchildren. He has chosen coal."
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Re: Greg Hunt exposes Lib's economic ignorance
Reply #5 - Dec 10th, 2006 at 6:57pm
 
I have to agree with Bob Brown.  Why carbon trading wasn't set up years ago for the coal industry and other carbon emitting industries for the good of this country?

Howard has sold us out - he doesn't care for our children or grandchildren, but only how much to give these industries.  Out of the $600 million allocated for climate change solutions - $400 million has gone to the coal industry.  In the meantime, he's kept middle australia bribed so they won't look too closely at our diminishing environmental programs.

The Greens are a party that cares about the environment.  They have to have some power in the Senate next year - otherwise Australia will become one large, saltridden excavation site.  Our resources are finite and will become scarcer in the next few years - increased mining has to stop otherwise we'll have nothing left for our own increasing population.

Carbon trading is the obvious solution initially to get a start on this.  Instead of giving petrol subsidies to 4 wheel drive owners - people who drive small, petrol efficient cars should be the ones rewarded.



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Re: Greg Hunt exposes Lib's economic ignorance
Reply #6 - Dec 11th, 2006 at 1:47pm
 
I prefer carbon taxes to carbon trading. They both give you the same price increase for a given reduction in emissions. The difference is that a tax scheme is more flexible and the price difference goes into government coffers and allows the government to decrease other taxes. With trading, the price increase just lines the pockets of polluting companies, the consumers pay higher prices and get no reductions in income tax to offset the icnrease.

I have just added this to the green tax shift article:

A green tax shift would produce the smoothest transition to a low carbon economy, because the cost of emissions is steady, while actual emissions fall gradually. Carbon trading requires a limit on emissions, which means a sudden drop in emissions and a sudden spike in the price of emissions rights. A sudden drop requires more costly ways to reduce emissions. As industry gradually shifts to more economical ways to cut emissions, the cost of emissions could drop. This greater uncertainty and more rapid and unpredictable change will harm the economy more for the same environmental outcome. There is no 'magic number' for the amount of carbon emissions which is 'safe.' A continual steady effort to reduce emissions is more appropriate than step changes that take years to negotiate and implement.
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Execs say carbon trading coming soon
Reply #7 - Dec 19th, 2006 at 2:23pm
 
http://www.smh.com.au/news/Business/Execs-say-carbon-trading-coming-soon/2006/12/19/1166290526266.html

More than 50 per cent of business executives think regulated carbon emissions trading will be a reality in Australia in the next two to five years, and most would welcome it, a survey shows.

The survey, by PricewaterhouseCoopers of 63 business leaders from 51 organisations, found every single respondent viewed climate change as a strategically significant issue for their organisation in the next five years.

And it is the potential for cost savings, not concern about the environment, that is predominately driving their enthusiasm.

"What the business community is saying now is they need to identify the low hanging fruit as quickly as possible," said PWC partner Andrew Petersen.

Close to 52 per cent of respondents said they expected a regulated scheme to be introduced within two to five years and 78 per cent said they would prefer a nationwide, regulated scheme rather than a voluntary one.

The PWC survey found that over half of the respondents were disappointed with the effectiveness of existing government policy on carbon emissions.

The federal government has indicated it is considering introducing an emissions trading scheme.

Finance Minister Nick Minchin said last month the Australian government would consider a carbon tax on industry, but only if other countries introduce carbon pricing as part of a global agreement to cut emissions.

http://www.smh.com.au/news/World/Thirteen-US-states-sue-environment-body/2006/12/19/1166290522589.html

Thirteen US states sued the federal Environmental Protection Agency on Monday for failing to set air quality standards that could save up to 24,000 lives a year.

http://www.smh.com.au/news/Business/NZ-looks-at-carbon-trading-market/2006/12/19/1166290516597.html

The New Zealand government is talking to the operator of the New Zealand stock exchange about the development of a carbon trading market.

http://www.smh.com.au/news/National/Climate-change-to-fan-future-bushfires/2006/12/19/1166290512481.html

Climate change will increase the frequency and ferocity of bushfires causing further damage to Australia's environment, according to a report from a policy research institute.
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EU seeks 30% emissions cut
Reply #8 - Dec 21st, 2006 at 10:37am
 
http://www.smh.com.au/news/World/EU-seeks-30-emissions-cut/2006/12/21/1166290643850.html

The European Union's environment chief says he will seek a 30 per cent cut in EU greenhouse gas emissions by 2020 as the bloc tries to set an example for the world on how to fight global warming.


An article by Tim Flannery (author of "The Weather Makers") on geothermal power in Australia:

http://www.smh.com.au/news/opinion/burnt-and-hostile-just-what-we-need/2006/12/20/1166290612689.html?page=fullpage

...it is estimated that the rocks lying four kilometres below the surface could yield enough electricity to power all of Australia for a century - at the price we now pay for electricity generated by burning brown coal. No mining is required, just boreholes to tap into the steam.
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Bicycle sales overtake cars and trucks
Reply #9 - Jan 4th, 2007 at 4:49pm
 
two of them were mine - the first one got stolen:

http://www.smh.com.au/news/National/Bicycle-sales-overtake-cars-and-trucks/2007/01/04/1167777207792.html

Bicycle sales outpaced vehicle sales in 2006, as more Australians turned to pedal-power to cut petrol bills.

The Cycling Promotion Fund (CPF), Australia's peak bicycle promotion group, said 1,273,781 new bikes were sold last year, well ahead of the 962,521 new cars and trucks retailed.


Robo-aircraft to 'prove drought's cause'

http://www.smh.com.au/news/National/Roboaircraft-to-prove-droughts-cause/2007/01/04/1167777200058.html

Robotic aircraft will be flown through storms in the Southern Ocean in a bid to prove if human activity is causing Australia's worsening drought.

Monash University weather researchers are heading a three-year study into the increasing number of storms and cyclones near Antarctica.


India's PM slams West on environment

http://www.smh.com.au/news/World/Indias-PM-slams-West-on-environment/2007/01/04/1167777197317.html

Slamming the West for its "environmentally wasteful lifestyle", Indian Prime Minister Manmohan Singh called for industrialised nations to look at alterative energy sources to save the environment.

"We, in the developing world, cannot afford to ape the West in terms of its environmentally wasteful lifestyle," Singh said at a science conference in Chidambaram, 195km south of Tamil Nadu's state capital, Chennai.

"Equally, developed industrial economies must realise that they too must alter their consumption patterns so that few do not draw upon so much of the Earth's resources."
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Bush: climate change backflip?
Reply #10 - Jan 15th, 2007 at 9:37am
 
There is a rumour going round that George Bush is about to do a backflip on Global warming. Will Howard beat him to it?

http://www.smh.com.au/news/World/US-denies-Bush-climate-change-rumours/2007/01/15/1168709648180.html
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Air travel not a great polluter: Bailey
Reply #11 - Jul 10th, 2007 at 6:03pm
 
This is crazy. The Liberals are basically going to start lying to people about the greenhouse emissions from air travel to boost tourism. If you do a carbon footprint calculation, the single biggest factor is long haul air travel.

http://www.smh.com.au/news/National/Air-travel-not-a-great-polluter-Bailey/2007/07/10/1183833485782.html

Australia suffers because of overseas perceptions that long-haul flights damage the environment, federal Tourism Minister Fran Bailey says.

Negative press campaigns in the UK and even in Australia promoted an incorrect idea about aviation's carbon emissions, Ms Bailey said.

Launching the new National Tourism Campaign Action Plan, Ms Bailey told industry chiefs a perception change was required to secure tourism dollars and jobs for Australians.
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Re: Greg Hunt exposes Lib's economic ignorance
Reply #12 - Jul 11th, 2007 at 12:02pm
 
[quote][Carbon trading is the obvious solution initially to get a start on this.  Instead of giving petrol subsidies to 4 wheel drive owners - people who drive small, petrol efficient cars should be the ones rewarded.
/quote]

Sounds very sensible doesnt it ?

My small car drives me nuts sometimes, even though its a wagon and relatively roomy..but it IS very economical to run and some long trips I just wouldnt make if I had a larger car..to expensive..out here we are paying a $1.40+ for petrol.
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« Last Edit: Jul 11th, 2007 at 12:34pm by oceanz »  

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Carbon market bad for planet: study
Reply #13 - Aug 15th, 2007 at 11:47am
 
http://www.smh.com.au/news/World/Carbon-market-bad-for-planet-study/2007/08/14/1186857511078.html

The current carbon market actually encourages cutting down some of the world's biggest forests, which would unleash tonnes of climate-warming carbon into the atmosphere, a new study warns.

Under the Kyoto Protocol aimed at stemming climate change, there is no profitable reason for the 10 countries and one French territory with 20 per cent of Earth's intact tropical forest to maintain this resource, according to a study in the journal Public Library of Science Biology.

The Kyoto treaty and other talks on global warming focus on so-called carbon credits for countries and companies that plant new trees where forests have been destroyed.
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