Letter to the editor - Essay Example

To the Editor, Sydney Morning Herald, Sydney, Australia. Number of words: 470 REF: Need for Carbon Tax Policy Reform Globally, carbon tax is one of most debated topics in the recent past. Carbon dioxide is greenhouse gases that can trap heat hence catalyze global warming. In Australia, carbon tax has become a major policy issue affecting businesses operations. Statistics have shown Australia as developed world’s most awful polluter per population head. Undoubtedly, with the increasingly evident effects of climate change, introduction and implementation of carbon tax is a significant way of curbing global warming.

Despite the significance of carbon pricing in preventing climate change, the policy is detrimental to the various countries involved, business operations as well as to the general economy. In essence, the tax forced energy raise in energy prices and also costs job. Many businesses have to strain their resources and change business operation techniques to compete well in the marketplace. In essence, exaggerated carbon taxes have been attributed the rapid lose of competitiveness of Australian products in the global market.

This is especially due to an increase in the product prices to be able to cover the production costs emanating from the introduction of the high carbon tax.On commencement of the carbon tax, Australian carbon prices tripled those of the European countries. The European Emission Trading Schemes generates $23 million as compared to $77.3 million per week in Australia. As such, Australian exports are higher in prices. These high taxes increases the cost of production and the weight laid on consumers who in turn consume fewer products.

The ACCC (Australian Competition and Consumer Commission) find it tricky to monitor prices or take action against organizations that try to exploit consumers or other business by charging unjustly high prices.Notably, businesses and households use price signal as an explanation for lowered consumption of particular products. According to statistics, consumers are likely to turn to using up cheaper imports. This has built uncertainty for investment; hence, companies prone to emission of carbon will be afraid to invest further considering the high tax payment.

This also renders high competition from other energy plants. As a result, some industries will end up withdrawing from business; hence, an economic downturn. From above perspective, the controversial carbon policy is both beneficial and detrimental. In line with the set standards on climate change in the Kyoto Protocol, Australia must be committed to trimming down the emission of greenhouse gases. However, while the implementation of carbon tax is valuable in curbing air pollution and subsequent global warming, its effects on the economy and business operations must be considered and handled accordingly.

Policymakers ought to ensure that the set policies do not detrimentally affect businesses or bring an economic downturn. Thus, a more favorable pricing policy should be put in place. Sincerely,(Name)(City)