[LINK] Carbon Tax

[Gordon Keith]

On Thu, 24 Feb 2011 02:01:52 PM stephen at melbpc.org.au wrote:
> Does anybody know *exactly* HOW any new Carbon Tax would be spent?

It will probably go into general revenue.

> For example, our last 4 electricity bills, for a very similar usage:
> 
> 17/07/2010  $394
> 17/09/2010  $496
> 15/11/2010  $524
> 17/01/2011  $602
> 
> In other words, a large increase in costs already, without a new tax.
> 
> Another increase in electricity costs for us will not decrease usage.
> 
> So, aside from further discouraging electricity use, (which will not
> happen for us, we're already very electricity use conscious) exactly
> HOW would the Carbon Tax monies be spent? If it's just to discourage
> usage, then bugger-off. But, if it will somehow wean our electricity
> suppliers off from burning brown coal (unlikely?) then any tax is ok.

Currently clean electricity is more expensive than dirty electricity, although 
dirty electricity costs the environment more, so very few people buy clean 
electricity.

The carbon tax will include some of the environmental cost into the equation 
so that it becomes more attractive to buy clean electricity.

For example if it costs $0.10 to generate a kWh using coal, but does $0.50 
damage to the environment and costs $0.20 to generate a kWh using solar then 
everyone buys coal power and the environment gets stuffed.

If it costs $0.10 to generate a kWh using coal, plus a $0.10 carbon tax and 
does $0.50 damage to the environment but costs $0.20 to generate a kWh of 
solar then suppliers will start building solar plants as they will likely to 
be able to sell solar power to the market.

If it costs $0.10 to generate a kWh using coal, plus a $0.50 carbon tax and 
does $0.50 damage to the environment but costs $0.20 to generate a kWh of 
solar then it would be a fair system and I will go back to believing in the 
quality of our politicians and fairies.

Regards
Gordon