A carbon tax is a tax levied on the carbon emissions required to produce goods and services. Carbon taxes are intended to make visible the "hidden" social costs of carbon emissions, which are otherwise felt only in indirect ways like more severe weather events. In this way, they are designed to reduce greenhouse gas emissions by increasing prices of the fossil fuels that emit them when burned. This both decreases demand for goods and services that produce high emissions and incentivizes making them less carbon-intensive. In its simplest form, a carbon tax covers only CO2 emissions; however, it could also cover other greenhouse gases, such as methane or nitrous oxide, by taxing such emissions based on their CO2-equivalent global warming potential. When a hydrocarbon fuel such as coal, petroleum, or natural gas is burned, most or all of its carbon is converted to CO
2. Greenhouse gas emissions cause climate change, which damages the environment and human health. This negative externality can be reduced by taxing carbon content at any point in the product cycle. Carbon taxes are thus a type of Pigovian tax.
Clive Charles Hamilton AM FRSA is an Australian public intellectual and Professor of Public Ethics at the Centre for Applied Philosophy and Public Ethics (CAPPE) and the Vice-Chancellor's Chair in Public Ethics at Charles Sturt University. He is a member of the Board of the Climate Change Authority of the Australian Government, and is the Founder and former Executive Director of The Australia Institute. He regularly appears in the Australian media and contributes to public policy debates. Hamilton was granted the award of Member of the Order of Australia on 8 June 2009 for "service to public debate and policy development, particularly in the fields of climate change, sustainability and societal trends".
John Quiggin is an Australian economist, a professor at the University of Queensland. He was formerly an Australian Research Council Laureate Fellow and Federation Fellow and a member of the board of the Climate Change Authority of the Australian Government.
Ian Castles was Secretary of the Australian Government Department of Finance (1979–86), the Australian Statistician (1986–94), and a Visiting Fellow at the Asia Pacific School of Economics and Government at the Australian National University, Canberra.
Coal is mined in every state of Australia. The largest black coal resources occur in Queensland and New South Wales. About 70% of coal mined in Australia is exported, mostly to eastern Asia, and of the balance most is used in electricity generation. In 2019-20 Australia exported 390 Mt of coal and was the world's largest exporter of metallurgical coal and second largest exporter of thermal coal. While only employing 50,000 mining jobs nationally coal provides a rich revenue stream for governments.
Mark Diesendorf is an Australian academic and environmentalist, known for his work in sustainable development and renewable energy. He currently teaches environmental studies at the University of New South Wales, Australia. He was formerly professor of environmental science and founding director of the Institute for Sustainable Futures at the University of Technology, Sydney and before that a principal research scientist with CSIRO, where he was involved in early research on integrating wind power into electricity grids. His most recent book is Sustainable Energy Solutions for Climate Change.
Carbon pricing is a method for nations to address climate change. The cost is applied to greenhouse gas emissions in order to encourage polluters to reduce the combustion of coal, oil and gas – the main driver of climate change. The method is widely agreed and considered to be efficient. Carbon pricing seeks to address the economic problem that emissions of CO2 and other greenhouse gases (GHG) are a negative externality – a detrimental product that is not charged for by any market.
The Carbon Pollution Reduction Scheme was a cap-and-trade emissions trading scheme for anthropogenic greenhouse gases proposed by the Rudd government, as part of its climate change policy, which had been due to commence in Australia in 2010. It marked a major change in the energy policy of Australia. The policy began to be formulated in April 2007, when the federal Labor Party was in Opposition and the six Labor-controlled states commissioned an independent review on energy policy, the Garnaut Climate Change Review, which published a number of reports. After Labor won the 2007 federal election and formed government, it published a Green Paper on climate change for discussion and comment. The Federal Treasury then modelled some of the financial and economic impacts of the proposed CPRS scheme.
Ross Gregory Garnaut is an Australian economist, currently serving as a vice-chancellor's fellow and professorial fellow of economics at the University of Melbourne. He is the author of numerous publications in scholarly journals on international economics, public finance and economic development, particularly in relation to East Asia and the Southwest Pacific.
Professor Ross Garnaut led two climate change reviews, the first commencing in 2007 and the second in 2010.
Greenhouse gas emissions by Australia totalled 533 million tonnes CO2-equivalent based on greenhouse gas national inventory report data for 2019; representing per capita CO2e emissions of 21 tons, three times the global average. Coal was responsible for 30% of emissions. The national Greenhouse Gas Inventory estimates for the year to March 2021 were 494.2 million tonnes, which is 27.8 million tonnes, or 5.3%, lower than the previous year. It is 20.8% lower than in 2005. According to the government, the result reflects the decrease in transport emissions due to COVID-19 pandemic restrictions, reduced fugitive emissions, and reductions in emissions from electricity; however, there were increased greenhouse gas emissions from the land and agriculture sectors.
Richard Denniss is the Executive Director of The Australia Institute. He is a prominent Australian economist, author and public policy commentator, and a former Associate Professor in the Crawford School of Public Policy at the Australian National University in Canberra, Australia. Denniss was described by Mark Kenny in the Sydney Morning Herald as "a constant thorn in the side of politicians on both sides due to his habit of skewering dodgy economic justifications for policy". In October 2018, The Australian Financial Review listed Denniss and Ben Oquist of The Australia Institute as equal tenth-place on their 'Covert Power' list of the most powerful people in Australia.
Crawford School of Public Policy is a research-intensive policy school within the ANU College of Asia and the Pacific at The Australian National University which focuses on Australia and the Asia-Pacific region. The school was named after Sir John Crawford, and its current director is Professor Helen Sullivan.
The Climate Change Response Amendment Act 2008 was a statute enacted in September 2008 by the Fifth Labour Government of New Zealand that established the first version of the New Zealand Emissions Trading Scheme, a national all-sectors all-greenhouse gases uncapped and highly internationally linked emissions trading scheme.
A carbon fee and dividend or climate income is a system to reduce greenhouse gas emissions and address climate change. The system imposes a carbon tax on the sale of fossil fuels, and then distributes the revenue of this tax over the entire population as a monthly income or regular payment.
The Clean Energy Act 2011 was an Act of the Australian Parliament, the main Act in a package of legislation that established an Australian emissions trading scheme (ETS), to be preceded by a three-year period of fixed carbon pricing in Australia designed to reduce carbon dioxide emissions as part of efforts to combat global warming.
A carbon pricing scheme in Australia was introduced by the Gillard Labor minority government in 2011 as the Clean Energy Act 2011 which came into effect on 1 July 2012. Emissions from companies subject to the scheme dropped 7% upon its introduction. As a result of being in place for such a short time, and because the then Opposition leader Tony Abbott indicated he intended to repeal "the carbon tax", regulated organizations responded rather weakly, with very few investments in emissions reductions being made. The scheme was repealed on 17 July 2014, backdated to 1 July 2014. In its place the Abbott government set up the Emission Reduction Fund in December 2014. Emissions thereafter resumed their growth evident before the tax.
Benjamin Richard "Ben" Oquist is a policy analyst, commentator and political and communications strategist.
Michael Jacobs is an English economist. He is a professorial research fellow at the Sheffield Political Economy Research Institute at the University of Sheffield. He was previously a special adviser to former UK Prime Minister Gordon Brown, Co-Editor of The Political Quarterly, in charge of the full-time staff of five at the Fabian Society, director of the Commission on Economic Justice at the Institute for Public Policy Research and a visiting professor in the Department of Political Science and School of Public Policy, University College London.
Frank Jotzo is a professor at the Australian National University's Crawford School of Public Policy, Head of Energy at the ANU Institute for Climate, Energy & Disaster Solutions, Director for the ANU Zero Carbon Energy for Asia-Pacific Grand Challenge initiative and Director of the Centre for Climate Economics and Policy at Australian National University. As an environmental economist, his research focuses on policy relevant aspects of climate change, energy, and broader issues of environment, development and economic reform.
