A critique of present Australian energy policy

Australia's reliance on cheap coal for electricity generation, with no allowance for emissions in its pricing, puts this nation with the United States at the head of carbon dioxide emitters per head of population. On a global scale, however, its overall emissions are less than two percent of the world's total. This latter fact has been the driver for the Federal Government's policy on emissions reduction together with the belief that a carbon price will seriously endanger the economy. These views are discussed in relation to the refusal to sign the Kyoto protocol, the continuation of the most devastating drought for a century, and the options available to curb emissions that are discussed at length in this special issue. The just issued Stern report adds credence to the necessity for legislative action on carbon pricing and the arguments presented here, but has not yet produced any change in existing policies.