subject: Understanding The Carbon Tax Law [print this page] The environment is in bad shape and we all know it. Whether it happened due to the forces of nature or due to the neglect of humankind, the one thing that is clear is that it is a present danger that we need to address before it gets any worse.
Climate change is one of the reasons why our concern for the environment should be more than just talk. With the planets temperature and sea levels rising faster than normal, the world may be facing massive costs and threats in the form of droughts and shortages. Pollution is also a well-known effect of climate change, with the world already being enveloped in a dark cloud of toxic fumes that threaten the peoples health.
With stakes this high, civilization as we know it, may be doomed to poverty and ultimate destruction. Also, if the current global recession is any indication, the collapse of civilization may even be closer than you think because too many self-centered decisions being made that have contributed to its growth has led us to this. Check Switchwise website to find out more about the negative effects of climate change on the economy and the people.
Of course it has to be stopped, which is why last July, Australia introduced the concept of carbon tax, which has been met with mixed reactions, most of them controversial. A carbon tax is a Pigovian tax levied on the carbon content of fuel, a tax basically applied to any market activity that generates negative effects. In this case, it is a tax that is being imposed on 300 firms that have been deemed as the worst carbon emitters. They are required to pay a levy of A$23 for every tonne of greenhouse gas they emit. You can imagine then, why it is already met with hostility by the concerned companies. It has even been referred to as toxic tax because it will cost jobs and therefore impact the economy negatively. It is also seen as a distinct disadvantage to low-income households who will have to shoulder a heavier financial burden. The government, however, is adamant that the tax is needed and will be used towards Australias pro-environment causes, and should therefore, not be viewed as anything but helpful. Check Switchwise official website to learn more about how the rest of the world views this implementation of the carbon tax.
From an economic perspective however, carbon tax is a cost-effective way to reduce greenhouse emissions and effectively addresses the problem of caused by the worlds biggest emitters of carbon dioxide, which is the major cause of pollution. While it will indeed impact low income groups, the government has put in place measures to make sure that they will be properly compensated in the form of pension and family payment increases. Also, when more funds are directed towards the implementation of pro-environment endeavors, the more jobs will become up for grabs because of the new investments that are being or will be made. Find out more about carbon tax and how it can benefit us in the long run when you consider how you can reduce your carbon footprint and utilizing green energy in your homes.
Despite these assurances however, consumers are still worried and with good reason. Even though they wont have to pay the carbon price directly and it is the biggest polluters that will do that but then, because they will be paying a higher price that also means that they will be charging higher rates for their services. But heres the thing based on an analysis done by the Australian Energy Market Commission, the impact of carbon pricing on households wont be as much as youd expect. Power rates will be pushed up just by about 6% per year, at around 1.74 by 2013 and 2014, with the rise in electricity rates as well, will depend on where your states electricity comes from and how it is generated.
This means that you can reduce the impact of carbon pricing in your home, you can control the prices you pay and you can do your bit for the environment at the same time. You dont need to fear the implementation of this tax that is specifically designed to help you and the environment. You just need to read up on more about Australia carbon tax in this site to fully understand why it was put in place. You can learn more tips and suggestions on how to save money and electricity in the form of assistance packages that the government has in put in place as an additional measure to help.
