Adverse impacts of carbon tax becoming apparent

While a carbon tax would make sense as part of a worldwide effort to limit greenhouse gas emissions – which is clearly a global priority given the mounting evidence on climate change – it makes no sense as a unilateral policy enacted in the absence of similar action by the US and China. We are imposing significant costs on our economy for an immaterial reduction in the likelihood of dangerous climate change. Examples of these costs are noted in the Courier-Mail today:

THE carbon tax has begun hitting Queensland small businesses, including a Brisbane private school which faces a $70,000-a-year hike in its electricity bill.

Six weeks into the carbon tax regime, price hikes are starting to hit hip pockets as power bills drop into letterboxes.

Queensland Chamber of Commerce and Industry president David Goodwin said the “weird distortions” were becoming apparent.

“We are finding that ordinary supermarkets like the local IGA may be up for up to $15,000 on the carbon tax alone if they have to re-gas their giant refrigeration system,” Mr Goodwin said. “Somehow these guys are going to have find ways to cover these extra costs.”

The Anglican Church Grammar School (Churchie) faces a 30 per cent increase in electricity for the month of July, well above the 9 per cent increase predicted by the Federal Government.

My previous posts on climate change include:

UQ study confirms carbon tax will hit Qld the hardest

Carbon tax will disproportionately impact Qld, so Newman has good reason to oppose it

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2 Responses to Adverse impacts of carbon tax becoming apparent

  1. 800psi says:

    You seem to be conflating the carbon tax with price rises for consumer electricity. You’re aware, no doubt, that most of the price rise is attributed to the ‘lines and poles’ upgrade.

  2. Gene Tunny says:

    Yes, I agree recent increases in power prices have been largely driven by the need to recover capital investment costs, but carbon pricing will significantly add to power prices and this impact will increase over time.

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