Leading economists have overwhelmingly rejected Tony Abbott’s direct action climate change policy and backed carbon pricing. For what its worth, a Fairfax Media survey 32 of 35 prominent economists supported carbon pricing:
Internationally renowned Australian economist Justin Wolfers…said direct action would involve more economic disruption but have a lesser environmental pay-off than an emissions trading scheme, under which big emitters must pay for their pollution.
BT Financial’s Dr Chris Caton said any economist who did not opt for emissions trading “should hand his degree back”.…Several economists surveyed said the weight of international evidence showed that carbon dioxide emissions could be reduced more efficiently through a broadbased market mechanism such as a trading scheme. “That seems to be the way that the major economies are headed – not uniformly, unfortunately,” CBA economist Michael Workman said.
“If I had to make a choice between pricing carbon and having bureaucrats allocating permits, then I’m going to go for the market mechanism every time,” said Rob Henderson, a National Australia Bank senior economist.
But Australian National University professor Warwick McKibbin said none of the policies on offer in Australia were sufficiently robust
University of Queensland professor Paul Frijters, one of two economists who favoured the Coalition approach, said he would not describe it as “direct action” but simply as “no action”.
…Commsec’s Craig James, who also supported the Coalition’s policy, said the standard economic assumption that markets could solve almost anything was not right. He said markets could fail and might be the wrong response to an environmental problem.
Not that it matters. I’m pretty sure of where our governing coal magnate sits on the issue.
