Should polluters pay for the carbon
emissions that they put into the air? The answer seems obvious, but big
industries continue to fight against government regulations, insisting that the
costs to them will be passed on to consumers. Recently Australia joined government
agencies like the European Union, certain U.S. states and New Zealand in an
effort to tax big polluters. The response from the executive director of the
Australian Coal Association was to give figures on the taxes implications of
the economic side effects. Ralph Hillman outlined to reporters that the tax is
expected to result in the closure of 18 minutes in Queensland and New South
Wales states, cost 4,700 jobs and lead to $22 billion in lost revenue. Indeed,
these proposals make even the consumers wary of rising costs but the government
is responding with a $1.3 billion assistance package to keep jobs within the
industry secure. Further the government has promised tax cuts and payments to
most Australians, saying that two-thirds of all households will receive enough
assistance to cover the entire financial impact of the tax.
What these taxes are on industry are, aside
from the economics, is the governmental push toward cleaner energy. Rather than
developing new innovations, opponents to any governmental tax appeal to the consumer
by touting that they are fighting for them. But taking into account the
environmental impacts of coal, are they really? Australia is one of the worst greenhouse
gas polluters in the world due to their extensive reliance on coal for power.
In addition to coal providing 85 percent of their electricity production, they
export nearly 75 percent of their coal mined. The new Australian tax has not
shied companies away from what may be the largest takeover bid in Australian
history for a coal company. U.S. coal company Peabody Energy Corp and steelmaker
ArcelorMIttal’s joint bid for Queensland State’s Macarthur Coal Ltd. is an
indication that lucrative coal production in Australia is, unfortunately, not
waning.
Peter Browning
Peter Browning
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