The implicit price of carbon

I was too busy to post when it came out, but the Climate Institute has recently issued an important report on the implicit carbon price associated with such measures as renewable energy quotas. The take home message is that major economies, either directly or indirectly, are putting in place carbon prices. China’s current implicit price, for example (in PPP terms), is roughly either times higher than Australia’s and three to four times higher than the USA and Japan.

You can read more here.

An important implication is that concerns about Australia “acting alone” or “getting out in front” are misplaced. We are, as we have been for most of the past decade, at the back of the international pack. One day, this will come home to hurt us.

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