At last, there’s action on climate change. The United States recently passed its largest climate bill ever. And Australia is set to usher a 43% emissions target into law this week, although the Greens will try to amend the bill so the climate impacts of new gas and coal projects are considered.
Good news, right? There’s one issue – these laws, packages and amendments conspicuously avoid the “T” word. Economists have long argued the best option to cut emissions is a tax or, failing that, a type of carbon market known as “cap-and-trade”. But nowhere do the Australian or US bills mention taxing carbon dioxide to discourage dumping it into the atmosphere.
