Economics

THE big news in Australia at the moment is yesterday’s Prime Ministerial announcement that Australia will cut its greenhouse gas emissions by 5 per cent of 2000 levels by 2020, but could cut up to 15 percent if other countries also sign up to stronger reductions.

In response to criticism that the target is too low, the Prime Minister, Kevin Rudd, has said this is really equal to a 27 percent reduction in “carbon pollution” for each Australian from 2000 to 2020 or a 34 percent reduction for each Australian from 1990 because of population growth.  

I find it somewhat amusing that the government can get away with committing to something that won’t be achieved for 12 years – a few full parliamentary terms there – and something that can be explained away as just 5 percent or, as the audience changes, a significant 34 percent!

But what the average Australian would probably like to know is how much this economic intervention will push up prices, in particular the price of basics like the home electricity bill. 

[Read more…] about Australian Government Commits to an Emissions Reduction Target

THE big climate change conference in Poznan, Poland, ended yesterday with a recognition that the United Nations was “softening its tone” and acknowledging that the meeting would not come to final decisions on any major issues on “fighting climate change”. 

Perhaps now is the time to move away from the idea that the solution to “fighting climate change” lies with a cap on emissions – an idea that has been pushed so hard by the United Nations. 

Perhaps now is the time to consider alternatives?

On Thursday the ‘Civil Society Coalition on Climate Change’ launched a report* by London-based economist Julian Morris imploring governments to recognise that instead of capping emissions they should be looking to adapt to climate change and also provide incentives to develop lower-carbon technologies.

[Read more…] about Climate Conference Ends, Time to Consider Alternatives