The cost of a green economy

Assume that the effects of climate change prove to be correct: the price of carbon is the cost of reducing carbon emissions and the most effective means of motivating carbon reduction is imposing a cost on that carbon. It will not be simple, and it will cause severe angst with many, but it will be effective.

If Australia, or any other developed country seriously considers implementing climate change reduction policies, then it needs to ensure that it can provide diverse job opportunities with a broad skills base to meet the needs of future generations. A consumer economy philosophy reliant on cheap imports is not a serious option to create that essential skilled base.

Wayne Swan's starry-eyed vision of Australia's history of overcoming adversity is an illusion from Australia's past. It ignores the fact that in the past Australia had vast areas of undeveloped land, and untapped mineral and water resources capable of sustaining growing populations. Australia in 2010 is no longer that country and faces serious challenges to future sustainability.

Australia is not alone in facing the challenge of an ageing and growing population, escalating demand for health care, education and law enforcement, as well as diminishing natural resources that include arable land and water.

No matter what policies the government of the day implements, Australia's efforts alone cannot reduce the effects of climate change on Australia. Australia should also not be relying on China for its future economic survival. Climate change is only one part of the overall problem facing nations around the world, not the entire problem.