Carbon Price Controversy

Part 1:

“Tony Abbott to lead 'party of ideas'”

By Samantha Maiden – September 22^nd 2010

http://www.thegreenpages.com.au/index.asp?page_id=1132

Part 2:

“Gillard Says Australia Needs Price on Carbon to Achieve Emission Targets”

By Elisabeth Behrmann - Sep 25, 2010

http://www.bloomberg.com/news/2010-09-25/gillard-says-need-for-price-on-carbon-to-meet-emission-cut-goals.html

Background:

PM Julia Gillard leading a committee that is looking to introduce a carbon tax in Australia, where eighty percent of electricity production comes from burning coal (http://www.businessweek.com/news/2010-09-27/gillard-led-committee-to-study-australia-carbon-price.html). This tax, which will be about $25 per ton of coal (twice that of the United States) (http://www.thegreenpages.com.au/index.asp?page_id=1132), will act as an incentive to people and businesses to reduce their energy consumption, and thus reduce overall emissions.

Part 3:

The first article iterates MP Tony Abbott’s stance against a carbon price. He is concerned with the impact that the tax will have on people’s cost of living and the cost of running a business. The second article addresses recent statements by Julia Gillard about her stance advocating a carbon price as opposed to the emissions trading scheme plan that was previously in place. Gillard says that a price on carbon emissions in Australia is necessary in order to meet the nation's goal of reducing carbon emissions by five percent by 2020. These articles demonstrate the ubiquitous balancing act needed to support both domestic and global interests. In light of the tensions demonstrated in these articles, I am interested in looking into what Australia is doing to provide alternative sources of energy. If sustainable alternatives are used (is the vastness suitable for windfarms?), or there is a campaign that successfully motivates Australians to use less energy, would a tax increase still be necessary?