Colebatch on carbon tax

Let consumers carry the can on carbon

My favourite economics writer has a good explanation of the Carmody suggestion to tax consumption of carbon instead of production.

I think his explanation of the problems with the idea is particularly worthwhile noting. As Colebatch himself has had a change of heart about this, it is clearly is not a case where it is obviously better than the alternative; just arguably better.

UPDATE: Alan Kohler's column about what Australia needs to do is also well worth reading, and makes considerable sense to me.