A carbon tax is a tax on any fuel that contains carbon atoms. If you believe the ACF (Australian Conservation Foundation) this carbon tax will make “make clean technology cheaper by putting a price tag on pollution”. What they don’t tell you is it just makes “clean” technology relatively cheaper by putting up the price of every fuel that has carbon in it.
Since alternative energy like wind,solar, geothermal etc is the most expensive way to produce power, the only way for a carbon tax to work is to make the use of fossil fuels even more expensive than the already expensive alternative energy.Â This way the general public will suffer the higher cost of energy until some time in the future, maybe decades away, when the power from alternative energy is slightly cheaper than the artificially high (because of the carbon tax) fossil fuels.
Julia Gillards Labor Government promised at the 2009 Federal Election “There will be no carbon tax under the government I lead.”Â That promise lasted about one week after the election. The Labor government will offer all sorts of compensation to poorer people to protect them from the ravages of a carbon tax. However, remember that the whole idea of a carbon tax is to change behavior. Peoples behavior is changed by making the price of fossil fuels more expensive, so people don’t use them.Â This means everyone has to suffer higher prices.