Assessing the carbon tax's financial impact on industries

For the vast majority of industries other than electricity generation, the impact of the carbon price will be surprisingly moderate. For those with significant exposure this will be noticeably muted through the allocation of free permits.

Partly due to the government’s own overblown rhetoric about a carbon price being the “most significant economic and structural reform undertaken in Australia since the trade liberalisation of the 1980s”, there is a pervading belief that industry in Australia is about to receive a massive economic shock from the carbon tax.

Ultimately for a carbon tax or carbon price to be environmentally meaningful it will have to almost entirely transform our energy supply. But the government has no intention of doing this within the next decade or two.

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