And Nonsense from Penny Wong Too
Interviewed on last night’s 7:30 Report, Penny Wong repeated the claim that because there are some free permits, the initial carbon price is not as high as it seems. This is complete nonsense – as with any tax, what counts in terms of its economic effects is the tax rate at the margin. At $23 per tonne, an Australian firm, operating in a trade-exposed, carbon intensive sector and contemplating an increase in production will still face a carbon price more than twice that in Europe and ten to twenty times that in our resource competitors.
Read more at Henry's blog.