There are targeted concessions for industries that are emissions-intensive and trade-exposed (EITE). For most exporters, the CT adds only pennies their cost-base by comparison with other costs and factors like exchange rates. The assertion that every cost penny counts, and only the weight of the CT penny will break the back of any failing small export business is spurious nonsense.

Regarding economic qualifications I'd listen to many others ahead of SM's authoritative assertions,

http://www.efic.gov.au/country/interviewsspeechesandpapers/2011speechesandpapers/Pages/Delving-into-the-effect-of-the-carbon-tax-on-Australian-exporters.aspx

Aluminium, cement and steel-making are the largest main energy intensive industries affected by a CT.

Aluminium has been discussed enough already at http://forum.onlineopinion.com.au/thread.asp?discussion=5157

Cement-making gets the highest level of EITE assistance and steel-making, it can be argued is over-compensated http://grattan.edu.au/static/files/assets/8aeed5f0/101_report_new_protectionism.pdf

My earlier post about domestically competing businesses raising prices to compensate for the tax is brushed aside by SM with the assertion that they will then lose customers to overseas online sales, as if that's a really huge deal and as if retail sales of goods is the only business in town. His authoritatively asserted superior economic qualifications seem to be applicable to only one side of a ledger

The CO2 tax is not aimed for best result if the object is to enable
alternative energy generation.
The main aim of the co2 tax is to increase the cost of electricity
generation.
What we need is to use our present cheap energy to manufacture the
alternative systems, whatever they turn out to be.
World coal will start depleting around 2025 according to most studies.
This will push up our coal prices if we continue to export it at the
present rate. However a more clever idea is to reduce or stop the
export of our coal because we have no idea at present how to produce
enough electricity 24/7 come windless and overcast weather which might
last for several weeks.
This would keep the AGW crowd happy as a lot less coal would be burnt.

If we knew how long it will take us to achieve the 24/365 outcome we
could adjust our exports to suit, but we don't.
Only the hot rocks system has any hope of 24/365 but we are not
making a strong enough effort in that field.
If we keep exporting our coal & natural gas we could end up burning
dollar notes to keep warm and have some light.

<< What we need is to use our present cheap energy to manufacture the alternative systems, whatever they turn out to be. >>

Absolutely, Bazz.

We should definitely reduce coal and gas exports and hold on to a large part of our reserves in the interests of future energy security.

These are two things that we should be doing in conjunction with a carbon tax.

The other major thing is to stop increasing the demand for energy! That is: stabilise our population!

The carbon tax is all well and good. But it is certainly not happening within a holistic regimen. These three other huge factors sit just totally at odds with it.

Coal companies are struggling. Apparently it's going to cost them $1 per tonne of coal they dig up and sell. How are they going to afford that? I can't understand why they are continuing to increase capital investment when there backs are clearly up against the wall as Tony Abbott has told us.

The aluminium industry will probably be hardest hit, considering how much electricity they consume. I can't understand why Alcoa was calling for an ETS a few years back! What were they thinking? Didn't they realise that with China refining alumina at a cheaper rate and undercutting them, that surely a carbon pricing scheme would destroy them? And i can't believe they've just signed a long term 400 million dollar haulage contract in WA. Don't they realise they're about to be squeezed to death by the toxic carbon tax like Tony said?

And all those foreign investors, pushing our dollar up. Haven't they heard we are introducing a carbon tax? don't they know our economy is on the brink of a giant carbon tax abyss? Sure, the economic credentials of Australia have never looked so good, but it's all smoke and mirrors by the clever Mr Swan, apparently. But strangely the investment keeps flowing in, like no-one is even taking heed of Mr Abbott's generous wisdom.

The carbon tax did it, ohyeah!

Oh, and a quick comment> RECHTUB, reduced emissions most definitely does not mean reduced productivity. In many cases, particularly fossil fuel energy production, reduced CO2/NOx emissions means greater combustion efficiency which means greater productivity. i.e. less fuel in for same energy output.

For example, Carbon tax gives extra incentive for Gas turbine operators to stick a heat recovery boiler on the end of their turbine exhaust, essentially increasing their electricity generation with no extra gas input as well as reducing final emissions to air. Many companies have just been waiting for the scheme to be implemented to maximise their credits.

David,

Instead of just spruiking the labor line, with sarcasm and half truths, perhaps you could reflect on some inconsistencies.

Alcoa did not call for an ETS but "Alcoa continues to support an emissions trading scheme that delivers reductions in greenhouse gas emissions and does not compromise the international competitiveness of Australian industry" i.e. calling for full compensation.

Below a $40 per ton carbon price, there is no incentive for large scale gas turbine power generation.

Gas turbines built for stand alone power generation are not suitable for heat recovery boilers. Those generating steam are built to have a lower air to gas ratio and hotter output (with a slight reduction in power generation efficiency).

LF,

The line I seem to be getting from you is that because the impact of the dollar exchange dwarfs the carbon tax, that it is insignificant or even non existent. For the mining industry with the present huge demand, growth is slowed but not stopped, and only a handful of marginal mines will close.

Outside the mining and mining support industry, the story is very different. Local retailers are competing with imports online and otherwise, and you only have to look at any shopping centre to see the unusually high number of empty shops.

The polls are clear, 2/3 believe that they will be worse off. and virtually no businesses believe that they will be better off. (except those supplying to the green's white elephants)

Assumptions in labor's modelling to 2020 with regards emission reduction ie CCS and gas generation are not happening, and emissions in 2020 are likely to be the same with a carbon tax as without.

oh dear david/quote..""can't understand..why Alcoa was calling for an ETS a few years back!""

duh..[free carbon credits]
you forget their ab-use of cheap[cut]. price energy
they sought a further advantage[just like the miners sought advantage]

just like some get subsidised fuel
some get free/govt subsidised babby sitting
they were just after the free govt lucre'

lol..""foreign investers""..for now
tomorrow reaping OUR harvest..[heard today..that royalties..on some of them frakking gas wells..donyt need to pay royalties FOR FIVE YEARS

add to that state govts building them free pipelines[lol infastructure]..but for export gain[for foreigners]
who have egsemptions tax free advantages..plus secret trust funds

how clean is that 'investment'..that steals that invested
to the peoples OF this bit of the commonwealth