- The Foundry: Conservative Policy News from The Heritage Foundation - http://blog.heritage.org -
Carbon Regulation: Time for America to Learn from Australia’s Mistake
Posted By Christina Baworowsky On September 23, 2013 @ 3:47 pm In Capitol Hill,Energy,International | Comments Disabled
Australia’s new Prime Minister Tony Abbott, who won a landslide victory  earlier this month, vowed to promptly scrap the nation’s tax on carbon emissions . He began to follow through at his first cabinet meeting . Also in line to be repealed are several commissions  organized by the previous government to provide carbon pricing and emissions analysis and administer billions of dollars in subsidies to renewable energy companies.
After its implementation, the tax became overwhelmingly unpopular. The tax on big emitters, such as factories and power plants, started at AU$23 per metric ton of carbon dioxide produced and was increased to AU$24.15 per metric ton in July 2013, as required by the law. The trouble is that this tax had a large ripple effect on more than just big businesses.
The Institute for Energy Research’s recent report  Australia’s Carbon Tax: An Economic Evaluation shows the practical economic shortcomings of the Australian carbon tax:
While Australian voters have come to the conclusion that the carbon tax has got to go, American politicians continue to offer it as a viable solution to global warming and the national debt . In fact, climate data does not demonstrate  that global warming is a problem or explain how sensitive the climate is to carbon dioxide emissions. The national debt is the result of a spending problem, not a revenue problem . Heritage analysis  of one such plan anticipates that a carbon tax in America, as in Australia, would damage the economy and have little to no environmental impact:
Though it seems promising that Australians will cut their losses by ending the tax, there is no way to undo all the damage that was done to Australian businesses and individuals. American politicians should take this as an opportunity to avoid such a loss altogether and prevent President Obama from working around Congress to implement his own climate agenda .
Christina Baworowsky is currently a member of the Young Leaders Program at The Heritage Foundation. For more information on interning at Heritage, please click here .
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2013/09/23/carbon-regulation-time-for-america-to-learn-from-australias-mistake/
URLs in this post:
 Image: http://blog.heritage.org/wp-content/uploads/Australia130320.jpg
 landslide victory: http://blog.heritage.org/2013/09/09/new-australian-leader-gives-hope-to-conservatives-everywhere/
 scrap the nation’s tax on carbon emissions: http://wattsupwiththat.com/2013/09/07/australia-liberated-from-their-long-national-green-nightmare/
 first cabinet meeting: http://www.theguardian.com/world/2013/sep/18/tony-abbott-cabinet-sworn-in
 several commissions: http://www.abc.net.au/news/2013-09-18/greg-hunt-on-clean-energy-fund/4964754
 recent report: http://www.instituteforenergyresearch.org/wp-content/uploads/2013/09/IER_AustraliaCarbonTaxStudy.pdf
 viable solution to global warming and the national debt: http://blog.heritage.org/2012/09/28/carbon-tax-wont-reduce-deficit-or-temperature/
 climate data does not demonstrate: http://blog.heritage.org/2013/06/26/obamas-case-for-action-on-climate-change-doesnt-cut-it/
 spending problem, not a revenue problem: http://www.heritage.org/research/reports/2013/08/federal-spending-by-the-numbers-2013
 Heritage analysis: http://www.heritage.org/research/reports/2013/04/boxer-sanders-carbon-tax-economic-impact
 working around Congress to implement his own climate agenda: http://www.instituteforenergyresearch.org/2013/09/17/epa-proposed-rule-will-destroy-u-s-coal-industry/
 click here: http://www.heritage.org/about/departments/ylp.cfm
Copyright © 2011 The Heritage Foundation. All rights reserved.