Quiggin on the Reallocation (Not Reduction) of Emissions Under the CPRS

The uselessness of additional action under the CPRS, by John Quiggin, March 23, 2009 ... There was a bit of dispute a month ago over the claim, made here and elsewhere, that the design of the CPRS made both voluntary action to reduce CO2 emissions, and government initiatives such as the Rudd government’s home insulation scheme, have no effect except to reduce the price of permits.

The issue seems to have been settled by this Victorian government brief, leaked to the Age, which states:

The Victorian government’s policies to cut carbon emissions will make no difference in achieving national greenhouse targets …The leaked brief, obtained by The Age newspaper, says the government must rethink policies including subsidising solar farms and buying hybrid cars for its fleet because they will not assist in meeting targets in the proposed federal Carbon Pollution Reduction Scheme (CPRS).

The Rudd government can and should fix this.