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The carbon tax won't have any affect on retail prices, HA.

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  • #31
    Originally posted by MrJack View Post
    I think it's got very little to do with competing against anything.

    If you are assessing an investment to reduce emissions and it costs $5m (Net Present Value) to upgrade a system or use an alternative product or material, while the NPV of the carbon tax it would save is $6m, then you have justification.

    Yes, your costs are $5m greater than without the tax in place, but the intent of the tax has been achieved and the mechanism has been effective. Provided you are still in business....
    Yeh, I think the last sentence is very relevant in some industries exposed to competition from sources immune to any significant environmental taxing. . While it makes sense to to spend $5 to save $6, you might just save $20 by shutting up shop and ceasing to trade. I'm not against a carbon price per se (it's a good idea in principle) , but I think the current fixed price regime is set too high, and we have to give some thought to aspects of the regime that simply encourage the off-shoring off the polution.

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    • #32
      Originally posted by Barry O'Speedwagon View Post
      Yeh, I think the last sentence is very relevant in some industries exposed to competition from sources immune to any significant environmental taxing. . While it makes sense to to spend $5 to save $6, you might just save $20 by shutting up shop and ceasing to trade. I'm not against a carbon price per se (it's a good idea in principle) , but I think the current fixed price regime is set too high, and we have to give some thought to aspects of the regime that simply encourage the off-shoring off the polution.
      That's pretty much it. The world pats us on the back while rubbing their hands together. Did you know that recycled paper is one of the most heavily taxed?

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      • #33
        Originally posted by saoye View Post
        That's pretty much it. The world pats us on the back while rubbing their hands together. Did you know that recycled paper is one of the most heavily taxed?
        Not sure about them being more heavily taxed per unit of carbon produced? They produce a fair bit of it. IIRC the problem is that they get no credit for the reduction of landfill that results from recycling (I might have missed something though). These are things that *could* be (largely) fixed without actually tampering with the tax itself (by allocating credits).

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        • #34
          Originally posted by flynnaus View Post
          Hehehe. I assume this is a tongue-in-cheek endorsement. Objective? Well, in a sense. Not that I'm pro-mining.
          Yes, very tongue in cheek. I'm neither anti nor pro mining, I just thought that clip was so well done that I couldn't resist posting it.

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