Leading economist says there is ‘no doubt’ carbon tax is in government’s net zero modelling

A leading economist says there is “absolutely no doubt” the Morrison Government has admitted a price on carbon will be needed to ensure Australia hits net zero emissions by 2050.

And he says it shouldn’t be a dirty term.

“We have made that politically toxic in Australia and that’s left our political leadership grasping for alternatives,” Richard Denniss, Chief Economist at the Australia Institute, said of carbon taxes.

He told Tom Elliott it was a simple and effective way of helping drive down emissions.

“There is absolutely no doubt that the modelling the government released last week, models the way a carbon price, carbon tax – I’ve got no doubt Scott Morrison will come up with some clever words – but what can’t be denied is the modelling released last week relies on a carbon price to actually, in the word they use ‘motivate’ investment in new technology, to motivate reductions in emissions,” Mr Denniss said.

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But the federal minister for energy has since hit back, denying the economist’s claims.

“It’s wishful thinking for somebody like him,” Angus Taylor said.

“There are no taxes, or penalties, in our plan.”

But Tom Elliott wasn’t convinced.

The two debated the matter on Wednesday afternoon.

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