Carbon price will cost economy - 09 Feb 2011

As a result of years of inaction on tackling climate change, the federal government's key adviser on the issue, Professor Ross Garnaut has indicated that there will be a greater cost to the economy and Australian businesses under any future emissions regime, including a possible higher starting price. He also warns that Australia was falling behind both the United States and China in dealing with climate change. Tight budgetary conditions would limit any assistance provided to industry under any carbon price scheme.

Prime Minister Julia Gillard has pinned her government's environmental credentials to achieving a price on carbon this year, saying it was the most "economically efficient" way to reduce emissions.

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