It's no contest - we need an ETS based on consumption

Is such a model complex? In Australia, it can use existing systems, including the existing Tax Invoice system, and the emissions data proposed by the Government in the Green/White papers.

As a bonus, all of the proposed messy, arbitrary, contentious, shifting, industry “carve outs” disappear. The model can be delivered to consumers on a real income-neutral basis. Only relative prices need change, with emissions-intensive product prices rising relative to others. That’s the signal required.

How much more complex is a production model? Just look at the detailed “carve outs” proposed in Australia. Check out the latest detailed “compromise” agreement of the EU on climate change policy.

It’s no contest. A production model is more inefficient and more ineffective. Globally, it won’t work.