How Will The Carbon Price Affect You?

By Author: Gene Armstrong
Total Articles: 3
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The carbon price, also known as the carbon tax, is being introduced to some countries today. Australia, for one, has introduced this policy last July 2012 and is now implementing regulations. But what is carbon price? To address the growing problem in the environment and issues on climate change and global warming, governments are putting a price tag on every ton of carbon emitted by a company that is listed in the top polluters.

Companies who are in the mining industry and power and energy distribution may be included in the top polluters as they are the ones with operations that require a high amounts of energy. Some are even involved in harnessing energy from coal, which is one of the causes of increased carbon levels in the atmosphere.

While households and small businesses are not directly affected by the carbon tax, there are still some side effects to this carbon price. Top polluters in various industries may have to increase the cost of their goods and services to be able to pay for the carbon price set by the government. Energy rates may increase. In Australia, it is said to increase by 6% each year. If ...
... a manufacturer of a commodity pays carbon price, the price of the commodity will most likely increase. The cost of carbon price translates to increase in prices of good and services.

Households are expected to pay more for energy. With green energy sources being introduced and harnessed for households in third-world countries, there's always the option to go green to contribute efforts in reducing the effects of the energy crisis experienced today. But green energy doesn't come with an affordable cost. In most cases, cost is higher if harnessed through renewable energy or green energy than the traditional coal-powered energy. The reason behind the higher cost is that green energy is still in its developmental stage. Methods and technologies in harnessing renewable energy is still being improved and developed.

Funds and more people supporting and paying for green energy will help fast track the development of green energy to make it the leading source of energy of the future. It might not be a cheaper means for businesses and households but the results will hopefully justify the struggle towards a greener energy distribution and environment.

The top polluters are given not much of choice. It is either they continue with operations that are harmful to the environment and pay for the increasing carbon price or resort to greener alternatives and processes. Households and individuals may also resort to cheaper goods and services from manufacturers that have more eco-friendly practices.

It is important for people to understand and be more aware of carbon price and how it affects the economy, the people, and the environment. With more people understanding how it works, there is awareness on the urgency of reversing environment degradation and the effects of global warming. Some people ask, "Is it that bad"? Changes in climate and environment have been significant. Carbon price is a policy to help sustain the environment and our natural resources.

You can know more about Australia carbon tax at SwitchWise. Read about it here.

Gene Armstrong is an energy expert based in Australia. He wishes to share his knowledge about switching, energy efficiency, and green energy. Find out more about Australia carbon tax at SwitchWise.