The Australian Government has produced a CO2-equivalent tax proposal with a difference, it is a short prelude to an emission trading scheme that will allow the increasing rate of emissions to continue, while being a net cost to the Treasury. That cost extends to allowing major emitters to make...

Australia managed to pass a national carbon pricing scheme into legislation in November 2011, which has come into effect from July 2012. The scheme includes elements of a CO2-equivalent tax as a short prelude to emission trading. Several fundamental problems remain unaddressed, including: the...