Tuesday, August 30, 2011

Carbon Tax. Good or bad?


I don’t know a lot about the carbon tax. I do know that it’s a tax placed on particular companies to reduce carbon emissions. Another thing I know is that my friends at school have got into many a heated argument about whether the Gillard government carbon tax is a good or bad thing. So I asked them to write about it.

Jack thinks it’s a good thing. This is what he had to say:


“For someone who is a keen environmentalist, pricing carbon is a vital first step in solving the climate crisis. I am non-partisan – I make decisions based on policy not parties. The Coalition’s environmental policy is simply not up to scratch.

The proposed carbon pricing scheme forces 500 of our biggest polluters to pay for their right to pollute; smart business people need to innovate and change to environmentally sustainable practices to remain competitive. This creates new sustainable industries – creating jobs and protecting the environment.

It’s important to understand the projected cost to end consumers. Under the scheme, 90% of households will be subsidised and most will be better off economically. The worst effects of climate change will be far more detrimental economically and diplomatically than deciding not to act. Finally, we see action in Australian parliament to bring the nation into the sustainable energy age.

People say that Australia’s emissions are insubstantial compared to countries like China but we have the highest carbon pollution-per-head of population. We have some of the dirtiest coal fired plants, and the price on pollution will pay to shut down 2000MW of these plants. China itself is taking action to reduce the pollution-per-head, starting a carbon pricing mechanism in some regions before merging into an economy-wide scheme like Australia’s. The effects of being “left behind” could be far more devastating to the future of Australia’s economy and environment.

Under the Renewable Energy Australia scheme, jobs will be created in the renewable and clean energy sectors. The Australian Renewable Energy Agency (ARENA) will manage a further $3.2 billion for investment schemes like the Solar Flagships Program which recently funded two massive new solar farms in Chinchilla (QLD) and Moree (NSW). Australia has huge amounts of the resources required to create photovoltaic cells (solar panels) - by investing in the technology, Australia has a potential to be the world leader in renewable energy. That’s a big deal when you consider how important this type of energy is for the future.

This is a brief overview of why the carbon price is a good thing - I encourage everyone to read more.”

And Brodie thinks it's not the best solution:

“I would just like readers to keep in mind that I am completely for the concept of minimizing our carbon emissions; I just believe that the carbon tax is not the most beneficial or strategic method in doing so.

The Carbon Tax is said to be an incentive for Australia to convert to renewable energy, they mainly direct this incentive towards large industries. I find this quite unusual, as they intend to penalise Australian industries, without taking note of those who are already running on renewable energy; I don’t believe it’s ethical that they aren’t giving a lower penalty towards industries who are already running on renewable energy.

To further expand this concept; Industry branches who are situated in Tasmania, who solely survive off the Tasmanian Hydro Plant, will receive the same penalty as to their industry on the mainland who are powered by Fossil Fuel Power Stations. If they aren’t going to offer a lower penalty to those being powered by renewable energy, there is no incentive for industries to convert as they won’t benefit financially.

This really defeats the main purpose of the Carbon Tax of encouraging renewable energy; this raises the question as to whether the government is really interested in being green or if they are focused on receiving larger amounts of money.
Instead of slamming our big industries, causing them to struggle against their competition in the world wide market, the government should collaborate with these industries, offering them a more appealing penalty that would only affect them if they are willing to support funds that would go straight towards the construction of more renewable energy sources.

This would be beneficial for the whole of Australia as we will have more renewable energy sources which could possibly replace Fossil Fuel, and also beneficial towards industries as in the long run they will be saving more money.

In strategic terms, our Australian resources will not have to raise their prices as high to compensate for the large penalty, fewer companies will close down, more jobs will be created through the renewable energy source plants and industries will have more money to fund their workers.

To conclude this idealistic ramble of mine; integrating these negotiated penalties to industries into the Carbon Tax isn’t a big task, rather than toying with our tax, this concept would have a better result in minimizing our Carbon emissions; if our government was really enthused about the environment, they would have gone ahead with this plan."

What do you think of the carbon tax? Good or bad? Check out renewableaus.blogspot.com for more info.



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