Economists disagree with Environment Minister over Carbon Tax

Ever since the Australian Government dropped the carbon tax policy – also known as carbon pricing – and switched to emissions trading, Environment Minister Greg Hunt won’t acknowledge that economists were right about the efficiency of the older policy.

Economists initially pointed out that the carbon tax policy would efficiently lead to a drop in overall carbon emissions in the country. Greg Hunt likes to point out that in its first year in effect, the country only saw a 0.8% decline in carbon emissions but completely ignores the results of the 2nd year.

However, just recently Greg Hunt and his department did publish the findings of the carbon tax. During its first year it did see a small decline but in its second year it led to a decline of 1.4% in carbon emissions. 1.4% might not look like much but when the entire country is taken into consideration that is a remarkable drop-off.

Economists state original Carbon Tax was not given a chance

Economists stated back in 2012 – when the carbon pricing policy took effect – that it would take some time for the new policy to see reasonable results. However, ever since it took place Greg Hunt has been on the rampage to point out it is only impeding on the country’s efforts to reduce carbon emissions.

Now that the Tony Abbott administration has replaced the carbon pricing policy with the new emissions trading scheme, Greg Hunt and the rest of his political party have once again ranted on that it would not lead to positive results. If only they allowed the carbon pricing scheme to continue.

Greg Hunt will have to explain why he worked to demolish a policy that was gaining results instead of continually congratulating himself for eliminating a system he only observed for one year. The results of the second year proved that the carbon tax policy could have led to lower carbon emissions by 2020.

Original RET decrease in emissions not acknowledged by Environment Minister

Unfortunately, Greg Hunt only focuses on the fact that the carbon emissions of the first year were less than 1%. Since the publication of the new report he has not made any comment regarding the successful data of the second year.

As of the moment, the country is going through a tumultuous turn in its efforts to reduce carbon emissions. One of the more controversial decisions is Tony Abbott’s persistence on the new Direct Action scheme which would reward polluting corporations instead of penalizing them.

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New Direct Action policy favouring polluting corporations

The Direct Action policy gives incentives to corporations that utilize new projects that cut down their carbon emissions but it does not limit or tax them for their total amount of emitted pollution.

In this case however, economists believe Greg Hunt has made a massive mistake. He should not be praised for stopping a policy he barely even gave a chance to prove itself and now that the data is out, he might want to reconsider putting it back up for a vote.

 

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The Author

Motivated and dynamic journalist with a strong interest in sustainable solar powered technology. My work in journalism and new media has provided me with a medium to produce content concerning emerging renewable energy.

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