In my (admittedly limited) reading about the proposed emissions trading scheme here in Australia, I get the impression there’s two primary objections (mostly from business, but also the opposition party – coincidence?) to the trading scheme.
The first is that a scheme will raise prices for the Australian public for goods from high-emissions industries, like electricity. I suspect this is to raise public opposition to the scheme, but I think that we’ve mostly overcome this objection.
The second seems to be that the scheme will negatively impact exports for these products, which in Australia will have a significant impact on exports. An extension to this argument is that producers in countries that don’t have such impediments will be able to undercut the price of Australian companies’ produce.
Over the jump I’ve put together some initial thoughts on these objections and the Government’s proposed approach…