OECD gives proposed trading scheme a bad rap

ABC News

The Organisation for Economic Cooperation and Development, OECD, has released the Economic Survey of Australia 2008 and criticises several aspects of the Government’s proposed emission trading scheme.  Primarily, the proposal for a cent-for-cent fuel tax cut is described as “counter-productive”, along with subsidies for heavy vehicles, fishing and farm fuel energy costs as they will remove incentives for energy efficiency.   The report also warns that any assistance to affected industries, especially coal-fired power stations, should carefully avoid compensating when the cost can be passed on to consumers.  An overview of the report can be found here, with comments on Australia’s education, labour supply, immigration laws and water management.

posted by kirsty on October 12, 2008 at 1:55 pm · filed under