Former ALP Minister Debunks Dodgy Carbon Data

29 Apr

Former ALP minister and Bachelor of Economics, Gary Johns, attacks the ALP’s dodgy use of data in propagandising for a carbon (dioxide) tax.  And agrees with my own conclusion that We Used To Care, But Things Have Changed.

From The Australian:

Having cost the political lives of one prime minister (Kevin Rudd) and two opposition leaders (Brendan Nelson and Malcolm Turnbull), Australia is now in the end game for pricing carbon. Pricing seemed like a good idea 10 years ago: it is now looking very sick.

Ask an economist the most cost-effective way to abate carbon and they will tell you market pricing. Right answer, wrong question. Ask an economist the most cost-effective way to prepare for the risk of climate change and you will get answers about priorities and adaptation. You hear about research and development, and spending money on things to make people (especially in developing countries) more able to cope with change: health infrastructure, skills, cheap energy.

Instead, the Gillard government walks headlong to its political death with its Climate Change Minister Greg Combet spruiking nonsense. For example, Combet is softening up the electorate for Labor’s carbon tax by arguing China puts a higher price on carbon than Australia.

Combet, on ABC’s Lateline this year, cited the Chinese and Australian implicit price for carbon from the 2010 Vivid Economics report for The Climate Institute: $8 per tonne for China and $2 per tonne for Australia. The idea is to tell Australians they are not pulling their weight. The Chinese must think Gillard a fool. Vivid Economics has been colourful with its analysis. They wildly overstate China’s and wildly understate Australia’s implicit carbon price. For a start, Chinese energy policies have not been developed with the aim of promoting greenhouse gas emission reductions.

The primary effort is to harness energy to create jobs and deliver improved living standards. The majority of renewable energy being built in China is large-scale hydro. Chinese power companies are interested in harnessing energy. Greenhouse gas abatement rarely rates a mention. Moreover, the Chinese subsidise coal fuel. As most new generation in China is coal, this implies that at the margin, China has a negative carbon price. Combet, the Climate Institute, and the Climate Change Department are knowingly feeding the electorate complete bunkum.

And Johns’ conclusion?

The electorate is becoming less enamoured with the climate change cause. Once they sniff brumby figures, Gillard will be the fourth political life lost to carbon abatement.

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