Australian government invokes ‘can-do capitalism’ to save us from climate change–disaster awaits — Scott Baum

Today, we have a guest blogger in the guise of Professor Scott Baum from Griffith University who has been one of my regular research colleagues over a long period of time. Today, he follows on from my previous post – The financial markets should be kept away from the climate crisis solution (November 10, 2021) – and discusses the failure of the Australian federal government to produce a workable net-zero emissions plan.…

A direct solution would be to require true pricing based on inclusion of negative externality in the cost of production instead of socializing it. This is called internalizing externalities. It could be accomplished with an excise tax to adjust for true cost. This would make carbon-based energy sources uncompetitive with alternatives. Obviously, this would be extremely painful for energy users (everybody) during the transition, so it is likely politically infeasible until the tipping point is past, and the public awakens en masse and demands effective action.

Bill Mitchell – billy blog
Australian government invokes ‘can-do capitalism’ to save us from climate change – disaster awaits
Scott Baum, Professor of Urban and Regional Analysis, School of Environment and the Cities Research Institute, Griffith University