Thursday, 28 April 2011

Focus on the premiums

20 April 2011, Page: 18

THE carbon tax debate has been seriously hijacked. Surely a carbon tax should be about disincentives to CO₂ producers and incentives to reducers. The incentives should flow to investments in renewable energy. Currently we pay a premium if we opt for renewal energy this should be changed so that we pay a premium if we do not opt for renewable energy, be it solar, wind, geothermal or hydropower. This gives an incentive to power suppliers to invest in renewable energy. Similarly, petrol prices should rise. The government should be subsidising electric, hydrogen powered and hybrid cars instead. The carbon tax should not produce a slush fund for politicians.

John Yeo, Glen Wayeriey