Alan Eggleston (WA, Liberal Party) Share this | Hansard source

Minister, I think Senator Xenophon makes a very good point about price volatility in the carbon market. It is one of the biggest issues which we have to face with emissions trading schemes. As he says, the volatility of prices can make the use of renewable energies quite uncompetitive. One way of avoiding the volatility of an emissions trading scheme would be to have a carbon tax. A carbon tax provides a very steady and known price for carbon, if you like, which is only varied by varying the tax. That tax can be set at a level that allows renewable energy systems to be competitive. So my question to the minister would be: what consideration was given to the introduction of a carbon tax in Australia instead of an emissions trading scheme, given that this huge issue of price volatility would have been avoided through the introduction of a carbon tax?