A majority of Australians support the introduction of a tax on companies that produce carbon to encourage a reduction in emissions, according to the findings of a survey released by the University of NSW (UNSW).
The survey found 85 per cent of respondents believe Australia needs a clear policy that addresses carbon emissions and ensures energy supply is reliable and affordable.
It explores attitudes to an economically modelled policy proposal for a market-based approach to reducing emissions through a company emitter tax that is redistributed progressively to Australian households.
The proposed Australian Carbon Dividend Plan would tax carbon dioxide at $50 per metric ton (MT) at the source, such as a mine or well or port, with the revenue generated returned to every voting-age Australian at an estimated $1,300 a year each.
While designed to use the tax to encourage companies to reduce their emissions, UNSW Professor, Rosalind Dixon, said the plan shows any price rises would be more than offset to consumers with three quarters of voting-age Australians to be financially better off.
“Those on the lowest incomes benefit the most,” she said.
Releasing an update to the Australian Carbon Dividend Plan earlier today, UNSW Professor, Richard Holden, said the results show two of every three Australians believe climate change is the biggest challenge facing the world today.
“A carbon dividend is strongly supported by Australians which should be great news to our political leaders who could adopt this model to help our country address one of the greatest and most pressing moral challenges of our time, climate change,” Professor Holden said.
“Australia, like many other countries, is committed to the Paris Agreement goal of keeping the rise of the globe’s temperature below 2 degrees and to cut emissions by 26-28 per cent by 2030, but to date no policy has used a market-based approach to reduce emissions while providing a practical and progressive means of compensating Australian households.”
An estimated 63 per cent of survey respondents said the government is not doing enough to lower carbon emissions to address climate change.
Meanwhile, the NSW government has announced plans to create renewable energy zones with the aim of attracting 3,000MW of investment in central western NSW to replace coal-fired power stations.
The government’s new electricity strategy supports the creation of three renewable energy zones and identified five key projects including a 50MW Darlington Point battery.