Carbon price repeal won’t cut your bills

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As I’ve said. From the SMH:

Hugh Saddler, a principal consultant for energy analysts Pitt & Sherry, said it had been ”almost impossible” to see the carbon price footprint when it was introduced, and it would be no easier if it was removed. The Australian Bureau of Statistics agreed.

”The ABS is not able to quantify the impact of the introduction of carbon pricing, compensation or other government incentives and cannot produce estimates of price change exclusive of the carbon price,” the ABS said in a statement.

”Similarly, the ABS will not be able to quantify the impact of removing the carbon price [if that were to occur].”

While consumers would have lower electricity prices if the carbon price was eliminated, the benefit was likely to be dwarfed by other changes in energy prices, the director of the Grattan Institute’s energy program Tony Wood said.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.