Frontier Centre

Australia has recently abolished what some have called the “world’s biggest carbon tax”. It was designed to combat climate change by reducing emissions of carbon dioxide that result from the burning of fossil fuels. Companies who produced emissions that exceeded a certain threshold were required to pay a hefty tax. The Australian legislation was highly unpopular because the companies who were subject to it, simply passed the cost on to their customers and hurt the local economy. Greenhouse gas emissions have been on the decline in Australia, but there is no consensus that the carbon tax is the reason. Coal remains one of the primary energy sources, but the shift to natural gas and hydro electricity is growing. The repeal of the carbon tax will enhance economic growth in Australia, and boost family income, thanks to lower utility bills. As an alternative to the punitive tax, the government of Australia is proposing financial incentives to encourage businesses to improve their overall energy efficiency.