Isra-Mart srl: Emissions indecision déjà vu

www.isra-mart.com

Will the Government's 'carbon tax'/emissions trading scam (ETS) policy work? Specifically, will it (i) help reduce global emissions, and (ii) do so cost-effectively? If not, why bother?

The policy announced on 10 July 2011 is complex, partial, and, possibly, not fully resolved. It has large coverage exemptions and concessions: permanent, temporary and/or of uncertain duration. Despite Government criticism of the Coalition's position, it also has loads of 'direct action' as well. It has extra layers of regulatory and other elements, and new bureaucracies, covering emissions permits, monitoring, renewable energy, etc. It makes our now-abandoned wholesale sales tax look simple. It's the antithesis of the 'broad base, low rate' golden rule for tax design and 'pricing carbon'.