Almost a year ago, Australia’s Prime Minister Tony Abbott won a landslide election with a nearly single-issue campaign: repeal the carbon tax. On July 17, he made good on that promise, as the Australian Senate voted, 39 to 32, to abolish the “world’s biggest carbon tax”—a tax that was reported to “do nothing to address global warming, apart from imposing high costs on the local economy.”
Australia was one of the first major countries, outside of the European Union, to adopt a carbon price—first suggested in 2007 and passed under Labour Prime Minister Julia Gillard in 2011. Gillard’s campaign promise was: “There will be no carbon tax under the government I lead.” While she attempted to brand it a carbon price, not a “tax,” Sinclair Davidson, a professor in the school of Economics, Finance and Marketing at RMIT University, said: “the electorate had a very specific understanding of her words” and perceived it as a broken promise.
Australia’s carbon tax, according to the Wall Street Journal (WSJ), was “recognized by the International Energy Agency as model legislation for developed countries.” WSJ reports that when Australia’s carbon tax was passed, the Brookings Institute “described Australia as an ‘Important laboratory and learning opportunity.’” Read full column