Price Is Right? (Adam Morton, 2012) Adam Essay

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Price is Right? (Adam Morton, 2012)

Adam Morton's work entitled "The Price Is Right?" published online the 'Environment' website examines whether Australia's carbon price is too high compared with other major countries in the world. Morton states that the idea that the carbon tax in Australia is too high began with an assumption among those in a political debate and then at some point 'became an assumed wisdom." (Morton, 2012)

The Truth

Morton states that when one actually surveys the carbon market on an international and local basis that the idea of whether the carbon tax in Australia is really higher than in other major countries is not as clear. The original price of $23 per ton of carbon dioxide placed by the multiparty climate committee of Labor, Greens, and independent MPs was based in part on the European price which was at the time approximately $20 per ton of carbon dioxide.

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However, the European price later fell and is presently less than $10 per ton of carbon dioxide. AS well, Morton reports that the United Nations scheme resulted in a price that is less than $5 per ton of carbon dioxide. This is based on the "price of carbon credits generated in the Clean Development Mechanism" according to Morton.

II. How It Works

Morton reports that the carbon tax in Australia is set to work as follows:

(1) Beginning July 1, approximately 400 businesses will pay $23 per ton of carbon dioxide emitted;

(2) Treasury projects the cost of living will increase by 0.7%, electricity bills by….....

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