Earlier this week we caught up with Lowy Institute Professorial Fellow Warwick McKibbin to discuss the new carbon tax.
For those readers who follow Warwick's work on economic instruments to address climate change (summarised in a 2006 Lowy Institute Analysis and more recently in newspaper op-eds) it will come as no surprise that Warwick strongly believes that this carbon tax is 'badly designed', 'will tax our competitive advantage' and has 'created a system that could self-destruct because the economic costs may become so great'.
What's illuminating, and sometimes missed, is that Warwick isn't against carbon pricing but is critical of 'political machinations over the top of rational economic decisions'. In our discussion with Warwick he criticises both sides of government for their approach to carbon, including the Coalition's direct action policy. He points out that our experience with the carbon tax will damage the ability of other countries to implement carbon pricing systems and is a lost opportunity for Australia to 'teach other countries how to design these systems'.
Happy viewing! (Or for those who prefer listening, we also have a podcast of the interview.)
