Tony Abbott's new direct action sceptics
Leading economists have overwhelmingly rejected Tony Abbott's direct action climate change policy and backed carbon pricing.
A Fairfax Media survey of 35 prominent university and business economists found only two believed direct action was the better way to limit Australia's greenhouse gas emissions. Thirty - or 86 per cent - favoured the existing carbon price scheme. Three rejected both schemes.
Internationally renowned Australian economist Justin Wolfers, of the Washington-based Brookings Institution and the University of Michigan, said he was surprised that any economists would opt for direct action, under which the government will pay for emissions cuts by businesses and farmers from a budget worth $2.88 billion over four years.
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Professor Wolfers said direct action would involve more economic disruption but have a lesser environmental pay-off than an emissions trading scheme, under which big emitters must pay for their pollution.
The extraordinary challenge of limiting global warming to less than 2 degrees - the level scientists consider necessary - was underlined by a new report by European consultants Ecofys that found Australia would have to cut emissions by at least 27 per cent by 2020 to play its part.
Australia has a bipartisan target of 5 per cent below 2000 levels by 2020. The Climate Change Authority - set up by Labor and which the Coalition plans to abolish - will this week release its draft recommendation on Australia's 2020 target.
Some said the direct action plan would rely too much on bureaucratic decisions. "If I had to make a choice between pricing carbon and having bureaucrats allocating permits, then I'm going to go for the market mechanism every time," said Rob Henderson, a National Australia Bank senior economist.
Link -
http://www.theage.com.au/federal-politics/political-news/tony-abbotts-new-direct...===========================================
It seems there may now be both a scientific & an Economists majority?