New evidence showing a fall in Australia’s carbon emissions from electricity generation – despite the country having one of the lowest effective carbon prices in the advanced world – has been welcomed by the Independent Member for New England, Tony Windsor.
Mr Windsor says these findings show the carbon price is working as intended.
“The carbon price was designed to gradually lower Australia’s carbon emissions at the least expense to the Australian economy – and the evidence shows that’s exactly what it’s doing,” Mr Windsor said.
“The highly-respected Organisation for Economic Co-operation and Development (OECD) states in its new report ‘Taxing Energy Use: A Graphical Analysis’ that ‘the lowest effective tax rates on carbon are found in Australia, New Zealand and the Americas…’”
“The comparison shows every single OECD country effectively taxes carbon emissions from energy generation, whether or not they call it a price on carbon.
“Australia’s carbon price of $23 per tonne is well below the OECD weighted average of $35 per tonne, placing Australia at 30th most expensive on the list of 34 countries.
“Meanwhile, Australia’s carbon emissions from electricity generation have fallen 8.6% in the first 6 months since the carbon price was introduced, due to a combination of the carbon price, falling demand and the Renewable Energy Target.
“So the carbon price scheme is working, despite the effective tax rate being amongst the lowest in the advanced world,” Mr Windsor said.
The OECD report reaches similar conclusions to the Productivity Commission’s 2011 report ‘Carbon Emission Policies in Key Economies’, which was commissioned as part of the Agreement reached with Mr Windsor on the formation of government.
The Productivity Commission report was one of the factors that influenced Mr Windsor’s decision to support a carbon price in Australia.
“More than a thousand ways to tax carbon were identified in the Productivity Commission report, most of which cost more than a carbon pricing scheme,” Mr Windsor said.
“The OECD report further demonstrates that the costs to residents and businesses of Australia’s carbon pricing scheme are among the lowest in the advanced world.
“Evidence continues to mount that the political campaign opposing the carbon pricing scheme relies on fear, not facts.
“I believe politicians should consider the facts and develop policies that advance the nation, not choose populist policies developed to advance their careers,” Mr Windsor concluded.
