Australia should delay a carbon tax until the rest of the world acts The big question about the carbon tax is not whether it's a good or a bad idea in theory. The major issue is whether it makes sense for Australia to implement it at a time of great uncertainty, both in terms of economic outlook and the extent and nature of international action. To my mind a carbon... Articles by This Author The big question about the carbon tax is not whether it's a good or a bad idea in theory. The major issue is whether it makes sense for Australia to implement it at a time of great uncertainty, both in terms of economic outlook and the extent and nature of international action. To my mind a carbon tax is not desirable. Australia's prosperity is based on a resource endowment that is carbon intensive, both in terms of our mineral and our agricultural sector. Moreover, much of that carbon intensity is not amenable to technological quick-fixes. For instance, there is little that can be done to reduce fugitive emissions in mining. Global warming is a global problem. Unless major emitting countries engage in abatement efforts, action by Australia is pointless. As well as being pointless, that action would be highly costly. Economic analysis shows -- and experience confirms -- that the world's mineral supply responds quickly to relative prices. If we tax our mineral exports, and competing sources of supply do not, world supply will shift to