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Well - the proposed MRET target and carbon tax would hit heavy industry just as hard (or perhaps not so hard) as it hits residential and transport.
I'd rather have a truly level playing field for all instead of trying to whack particular sectors.
The ideal outcome is that as we scale up wind and CSP usage the price trends towards that of coal anyway (especially once the initial investments are amortised away).
True, but what annoys me is all the focus on residential/transport solutions (rooftop solar PV and hotwater, home insulation, energy efficient lighting, hybrid cars, public transport etc) when all of these gains could be achieved by shutting down a few smelters. Would anyone miss them? Not me!(yes I know they'd probably just move to China)
Of course that's the ideal, but I'm trying to come up with something that's politically possible, and I don't believe an across-the-board carbon tax that actually hurts consumers (read electors) to the point where they start conserving is politically possible.
Whacking heavy industry OTOH doesn't lose you many votes and has very little economic impact. They should at the very least get rid of the subsidised electricity to heavy industry.
BTW, did you see Robert Rapier has given up all hope of any real action on global warming?
Whacking heavy industry would provoke just as much bad press as a carbon tax - the same people will wail.
If you offset carbon tax with income tax cuts then the consumer isn't hurt - and they get to feel good about themselves too.
What subsidies to the smelters get ? I thought they just had long term forward sales contracts...
I hadn't seen RR's comment (I don't have time to track all the comments in Drumbeat - or even the first one sometimes :-). I hope he is wrong.
Huh?! How can a carbon tax that raises electricity and fuel prices for everyone possibly have the same impact as closing smelter or two? That's like saying Rudd raising the fuel excise by 10c/L would have the same impact as Mitsubishi closing. No-one really cares about Mitsubishi apart from the people who lost their jobs, but you'd have 10 million irate motorists if petrol jumped 10c/L because of a new tax.
I agree, I think a well thought out income-to-carbon tax switch could have very little impact on most consumers. However, I doubt we'll find a politician with the courage to try it. After all, Howard almost lost the GST election in 1998 after winning a landslide two years before.
They get electricity at a much cheaper rate than most industry, and a fraction of the residential rate. They'd all be off to China in a flash if they were asked to pay anything like the residential rate.
Anyway, the point I'm trying to make is politicians are desperate to come up with a way to reduce carbon emissions without any electoral damage. I caught Tony Blair on CNN at Davos saying this in a roundabout way a few nights ago. They know in their heart-of-hearts a carbon tax is the right thing to do, but they also know it will probably get them kicked out of office.
So, in the extraordinarily unlikely event that Kevin invites me to his summit, my suggestion to him would be hit heavy industry with higher energy prices. If they fold, or go to China, then he can wipe a few megatonnes of CO2 off Australia's slate. If they can afford the extra cost (like the miners) then we might see some conservation.