It is important not to get carried away or influenced by what be a 'scare stroy'. Politicians love scare stories, but its all politics, not truth.
However there is a concern that the RET's, Renewable Energy Targets, might be dropped. This is consistent with the Abbot government's climate change denying agenda that is also seeing them trying to abolish the Carbon Tax.
The RET is an example of a regulation to deal with market failure. The Carbon Tax is using the price mechanism. While Economists prefer to use prices to influence behaviour, regulation is also important in the case of many market failures - a belt and braces approach.
It is important to concentrate on the issues here:
Why has the market failed in the case of climate change?
What direction must policy move the market in?
What is the best way to achieve the desired goal?
When you approach the issue from this direction you will be applying economic thinking, not political rhetoric.
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