The trouble with the ETS is I do not think it can be cast in a language a lay person can understand, so I do not think it is saleable to the general public. It is not a tax but it appears to be a tax at it will increase prices. It is clear that is why many of those opposed to the ETS call it a tax.
The other alternative is an actual tax, it has been called a carbon tax.
I've said this elsewhere but here is a repost for here.
What follows is my understanding of the carbon tax vs. emissions trading debate.
We have known the ETS is a cap & trade system for a long time now.
Which of course means small business will do their job, sell their permits and big business will pollute just as much as they do now as they'll have all the permits. It essentially becomes a monopoly or an oligopoly.
Small business could then make a mistake and actually produce more carbon than it should but then get fined (I'm assuming a fine is an option for a breach) because there are no permits left to buy (trade) since big business has them all and isn't willing.
The small business is then forced out of the market place and goes out of business.
This is of no concern to big business. Big business puts the prices up to pay for new costs as they have always done.
The consumer pays more. Making ends meet becomes more difficult.
Sounds like a Tax. Not a tax per se but this is why it is broadly called a tax.
The concept of a carbon tax is actually simple and easy to understand. It is broad based and applies equally to all. The CIS have outlined quite nicely how a
carbon tax would work. I think it would be more saleable in the broader electorate which thus far has confessed it does not understand the ETS.
As far as I can tell, the only reason we're introducing an ETS is because most of the rest of the world is and it is easier to trade like with like (ETS & ETS) instead of like with unlike (ETS & Carbon Tax).
It is irrelevant whether the science is correct or not, the rest of the world is acting so it is politically astute for Australia to be seen to be acting as well.
