While the energy of the future remains in its early stages of development, it is the job of economists to figure out the right incentives to bring energy production and consumption closer in line to their real costs.
In other words, when big polluters produce carbon emissions in the production process, they are harming everyone, at no additional cost to their business. Enter the carbon tax. Big Think Chief Economist Daniel Altman today explains the rationale for Australia's carbon tax, which is to be introduced on July 1.
Altman also describes the complications with implementation. After all, the eyes of the world ought to be turned on Australia as we see how this experiment unfolds.