With a trade off of economies of scale, Australia could be on the verge of having its first ever carbon tax.
The idea is to capture emissions that would otherwise go towards the energy sector, which would then be taxed in the form of a tax on emissions.
This is the “carbon tax” that has been proposed in the US and Europe, and is also the model that has recently been rolled out in New Zealand.
However, it is not the first carbon tax to be proposed, and it is unlikely to be the last.
The first carbon taxes to come into effect were in Australia in 1995, which raised about $100 billion a year.
The carbon tax introduced in South Australia in 1999 raised about the same amount of money, but was a little more expensive to administer, due to the costs of processing the paperwork and the difficulty in collecting the revenue.
The tax was ultimately repealed in 2003.
There is a growing belief that this model is more effective than other tax systems because it is more transparent, because it has an efficient way of collecting revenue, and because it makes more money, compared with other forms of taxation.
So what is the risk of a new carbon tax in Australia?
First, is it likely to be successful?
There are a number of factors that need to be considered.
First, the tax is likely to have a negative impact on emissions and will require the introduction of a more expensive and cumbersome system of tracking emissions.
It is also unlikely to produce a significant reduction in the amount of carbon emissions that are emitted, and may increase the emissions of other pollutants, such as methane and particulate matter.
Second, a carbon price is likely not to generate the revenues needed to cover the cost of the new system, even though the carbon tax has been estimated to generate more than $300 billion in additional revenue over the period.
Third, the price is unlikely even to generate significant economic growth, as the economy is likely already over-capacity with the need to deal with the carbon price.
If Australia were to impose a carbon fee of $40 per tonne of emissions, it would be less effective than a tax of $10 per ton.
The most likely scenario is that the new tax will be passed on to consumers, which means the tax will not be passed back on to the economy as a tax.
It will therefore have a lower fiscal impact.
The second factor is the cost.
The cost of a government-imposed carbon tax is high, because the government would have to collect the revenue in the guise of a levy on carbon emissions.
The current system of carbon taxes has had a negative effect on carbon emission rates in the past.
However that has not been the case in the future, and if Australia were introduced to a carbon taxation system, the effect of the carbon taxes would be much lower.
In the case of a future carbon tax, the cost would be offset by the fact that emissions would be captured, while the revenue collected would be returned to the taxpayers.
The third issue is that any tax would have a cost that could be passed to the consumer.
It would be difficult to predict exactly how much a carbon taxes will have to raise to offset its costs, since any revenue collected could be spent on other things, such the tax on fuel, or other types of infrastructure.
However if Australia does adopt a carbon pricing system, it will have the option of collecting revenues through indirect taxation, such by charging an income tax or a GST, or through a dividend tax.
However the amount that is collected will not necessarily be sufficient to cover costs, and the total cost of carbon will probably increase over time.
Finally, a government may be reluctant to impose such a tax in a time of economic distress, so any carbon pricing will likely be introduced with a delay, if at all.
This would make it unlikely that a carbon-neutral economy would emerge from the carbon-pricing system.
What is the Australian experience?
It is possible that the first tax on carbon would not be implemented, or that the carbon fee will not have the desired effect.
But there are other reasons for not to enact a carbon bill.
Australia has already introduced a carbon tariff.
This tariff is aimed at reducing the amount and intensity of carbon dioxide emissions in Australia, but has also been used to increase the amount emitted by companies in other countries.
The Australian government also recently introduced a tax exemption for emissions that were captured by a business that did not meet its emissions-reduction obligations under the carbon levy.
The Government of New South Wales has also made carbon tax concessions to industries, including by introducing an exemption for new equipment manufacturers and a cap on new equipment and fuel purchases.
In contrast, Australia is likely a relatively low-carbon economy.
However it is possible to reduce emissions significantly by increasing the number of vehicles and trucks on the road, and by introducing a carbon charge on energy use.
There are also incentives to increase fuel efficiency, such in terms of the tax credit and incentives for reducing fuel consumption.
So, a relatively