Understanding Climate Risk

Science, policy and decision-making

The End of the World

with 5 comments

This blog has been silent for longer than I’d like to recall (*crickets*), but I really did think that I wasn’t going to wake up this morning, or if I did, it would be in limbo.

See, the world ended today July 1, 2012 because the carbon levy came into being. Maybe it’s been put off until tomorrow when the markets open. This will be the next shock that brings the global economy to its knees.

Independent Australia has got it about right, posting the end of the world under satire. Terry McCrann, who continually satirises himself (and amuses me no end), writes in the Hun today:

Its direct impact, as a tax, is the broad equivalent of increasing the GST by 20 per cent or so.

But it is the carbon tax’s impact on the underlying economy that makes it a very different beast to the GST.

That is because the carbon tax mounts a direct attack on the foundations of our modern economy and of our ordinary everyday lives: access to cheap, plentiful and reliable power.

Bizarrely, we have a government which actually wants to destroy our overriding national comparative advantage viz-a-viz the rest of the world. Cheap coal-fired electricity.

It’s based on a series of lies – and, you can only conclude, the mother of all exercises in self-delusion by the Cabinet and, critically, Treasury.

And all to absolutely no point.

Our carbon tax, even on its own terms, can make not the slightest difference to global emissions of carbon dioxide, and so to the climate.

Ummm Tezza McRant, sorry mate, it can and it will make a difference. That difference is measurable, is accepted in the scientific literature, has been accepted as expert evidence in courts of law (e.g., the NSW Land and Environment Court). Patrick Moriarty at The Conversation disagrees with this, saying that a market-based scheme cannot do enough. While that may be true, a price is necessary, but dealing with consumption and waste is better. For example, Alan Pears has compelling statistics showing how much waste heat is produced in energy production (up to 88%).

Even if the permits were given away for nothing, they would have a lasting impact on an ongoing basis because of the ongoing cap on emissions. This was the case for sulphur dioxide emissions in the US. It’s the same as paying a garbage levy that’s directly linked to the amount of rubbish a household produces.

That’s not going to stop various suppliers from gouging customers on the back of this. The Australian Consumers and Competition Commission will have its hands full as discussed recently on the ABC’s 7:30 Report.

I was a little surprised to get a letter from my energy supplier this week to say my energy costs were going to fall. Because I was already buying 100% green power, which was becoming cheaper with the levy, they were reducing the price to minimise double counting. I can afford to pay for my environmental externalities, so do when I can, if I haven’t  minimised consumption through behaviour (I do cheat a bit).

Please buy from suppliers who factor the natural and social environment into their supply chains when you can. Every bit counts, a lesson those in the developing world haven’t forgotten but we have.

The biggest issue is with the socially disadvantaged who need to use energy for heating and cooling but have limited funds. The compensation coming through will not always cover their outlays and existing gaps in social safety nets may become wider. This is an issue with indigenous communities, tenants, refugees and recent immigrants. Those running temporary accommodation for the homeless will also be hit – hopefully there is a mechanism to identify where these gaps may be – not holding my breath, though. A terrific article on how the poor were pulling their weight environmentally was published last week in The Conversation by Lesley Head.

And remember, you can report pricing scams here. More info on what’s kosher and what’s not is detailed here.

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Written by Roger Jones

July 1, 2012 at 12:00 pm

5 Responses

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  1. Good to see you back Roger.

    In my opinion, Terry McCrann has a shit job to make a living! You know, like flipping burgers at a greasy joint, feeding pink slime to a growing market of modern obese live style. Where you kind of have to believe in it because it pays the bills, but you know there is no future in it, realistically.

    “A DIRECT ATTACK ON OUR EVERYDAY LIVES”. Yeah Terry, that is only if you work with aRECIPE FOR DISASTER: CREATING A FOOD SUPPLY TO SUIT THE APPETITE.

    0otz

    July 1, 2012 at 2:23 pm

  2. Welcome back Roger.

    Climate Spectator has a special edition on the ‘carbon tax’.

    Have a look at the budget overview for the ‘great big new tax’. I make it about 2% in the revenues of $376.1 billion. Pretty much in the league of margin of error.

    Brian

    July 2, 2012 at 12:06 am

  3. Good to see you are still alive and well Roger. The big impact of the carbon tax may well be that it demostrates to other countries that a carbon tax doesn’t has a negligible effect on the economy. It also offers a way for carbon pricing to be introduced without creating hardship for those at the bottom of the pile.

    John D

    July 2, 2012 at 10:21 am

  4. I was wondering what had happened to you. Good post – but I can’t find it in me to be either amused at Terry MCrann as you are or feel sympathy for him as Ootz apparently does. Australia Instritute has produced an infographic that effectively dismisses the great big new tax smear.

    Douglas Evans

    July 3, 2012 at 12:26 pm

  5. Thanks all. Especially for the links Brian. Doug, I am continually amazed that McCrann gets paid for those rants. Part of my amusement is through sheer incredulity at what our society is prepared to sustain.

    Roger Jones

    July 3, 2012 at 1:33 pm


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