Letter

In response to Economists want a carbon price comeback – but does Australia have the political courage?

Aussie economists aren’t realistic about carbon

Felicity Deane’s article repeats the familiar daydream of “economic experts” – carbon-pricing best tackles “climate change”. Case by case, it’s true carbon-pricing schemes can “reduce emissions” or at least reduce the “growth rate”. Back at macro level, so what?

Sure, the US has genuinely reduced emissions – largely via coal-to-gas switching. The EU has had an ETS since 2005, but it doesn’t even cover half their emissions. Their emissions-reduction factors are coal-to-gas and more renewables. The power of the ETS itself is debatable.

Meanwhile, China gets an indulgent UN pass to burn far more coal than the rest of the world combined, producing a third of all global emissions. Which, as we know, keep on rising.

— Stephen Saunders from O'Connor