Economist Matt Nolan blogs:
The ETS is a scheme to raise the funds to pay for our Kyoto Liability. Even if you don’t believe in global warming, we have a liability that is based on carbon emissions. As a nation, either people who produce the carbon pay for it – or everyone pays for it through higher taxes.
So here in lies the question – do we want higher prices for carbon goods or lower incomes because of higher taxes? Given that the liability is a function of the amount of carbon we produce, it follows that pricing carbon on the basis of this will lead to the “best” solution – no matter what political party you support. I know that National, Labour, and the Greens all understand this – so if you guys could like, explain it to the ACT party, and then like, explain it to the public, I’ll be very happy
Let the howls of outrage begin.