The government's response, which is to promise compensation for all and sundry, is also a worry, as it will simply fund us all to keep polluting as we always have done.

Surely an effective carbon tax should work something like this: A carbon tax is applied to high emitting fuels such as coal and oil. The revenue raised is used to subsidise large and small scale renewable energy generation, fuel efficient vehicles, quality public transport etc. These greener options become cheaper as a result. Consumers choose the cheaper options.

Supply of renewable energy, pubic transport, efficient cars etc increase in response to consumer demand. Demand for coal and oil declines. Greenhouse gas emissions are reduced.

If the tax (or an ETS for that matter), works to make renewable energy cheaper, then people who choose the cheaper, cleaner options should have nothing to fear from a carbon price. (Even now the price of rooftop solar power has fallen dramatically and is within the reach of many households. A 2kW system costs around $5500 and will power an average house for some 40 years.)

Here in the Snowy Mountains we have a lot to lose in a warming climate. We need a price on carbon but we need one which actually works.

Kate Greenwood

Clean Energy For Eternity

Snowy Mountains