"Replace the carbon tax with a more efficient scheme that rewards low-emission industries and encourages greater investment in new sources of renewable energy"
When it comes to climate change, the very least we can do is to give the planet the benefit of the doubt.
That said, I don't support the carbon tax introduced by the Federal Government, nor do I support the Opposition's 'direct action' plan. Both schemes are inefficient and wasteful and there is a much better way forward.
The Government's carbon tax has involved billions of dollars churned via the bureaucracy, with big polluters being rewarded with billions of compensation. The design of the Government's scheme has also forced up power prices unnecessarily.
While I would support the repeal of the current carbon tax, it must be replaced by something more efficient for the economy and more effective for the environment.
I support the model developed by leading economic think-tank Frontier Economics that I commissioned jointly in 2009 with then Liberal leader Malcolm Turnbull. This scheme rewards low-emission industries while punishing high-emission industries. It involves carrots and sticks, and unlike the Government's scheme it doesn't involve the massive taxing and wealth distribution associated with Government's carbon tax.
The Frontier Economics scheme is smarter, cleaner and cheaper.
While I support the current renewable energy target, its current rules are stacked against baseload renewables such as geothermal and solar-thermal. The problem with an over reliance on wind energy (leaving aside community and noise concerns) is that its power generation is intermittent and it makes power much more expensive than it needs to be.