Mr Abbott conceded yesterday most economists think a carbon tax or an emissions trading scheme the best way to go, but ''maybe that's a comment on the quality of our economists rather than on the merits of the argument''.
He made his criticism at a conference co-sponsored by the Melbourne Institute, Melbourne University's economic research unit. A report prepared for the Australian Industry Group by Ernst & Young assessing government and opposition climate policies, released yesterday, says: ''The general consensus among experts is that carbon pricing is likely to be the most cost-effective way of achieving low cost abatement, particularly in the long-term''.
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Prominent economist Saul Eslake was quick to return fire, with the Grattan Institute director saying Mr Abbott only made his ''cheap shot'' because he couldn't find a single economist to support his direct action policy.The government seized on Mr Abbott's comment, recalling that he was ''on the record as saying economics is 'boring' ''.
Meanwhile, The Saturday Age has learned that brown coal-fired power plants such as Hazelwood and Yallourn in the Latrobe Valley will be invited to tender to be closed under the government's carbon price deal to be announced next weekend. The multi-party committee has agreed that some revenue from the tax will be used to buy and shut down coal-fired plants.
It is understood a tender would be held to buy about 2000 megawatts of the nation's ''dirtiest'' coal power capacity - likely to equate to one large Victorian plant and a second smaller plant, possibly Playford in South Australia.
The successful plants would be closed over an extended period, likely to be a decade, and are expected to be replaced by new gas-fired power plants, which have about a third of the emissions of brown coal.
The owners of Hazelwood and Yallourn, International Power and TRUenergy, have said they are open to being paid to close, but it is understood the decision on which plant shuts would be determined through the tender. International Power's asking price is believed to be about $2.5 billion.
As the cross-party committee finalises details, motorists will be reassured that they will not be hit under the scheme.
With the carbon debate set to enter a crucial phase, business groups are considering a multi-million dollar advertising campaign against it. But key independent Tony Windsor, a member of the cross-party committee, said if they hoped to influence the parliamentary vote they would be wasting their time. He promised that if he is signs up to the deal next week, he will stick by it through to the parliamentary vote.
Prime Minister Julia Gillard, who on Thursday was labelled ''tricky'' by Mr Abbott when she tried to back off calling the carbon price a tax, yesterday returned to admitting it was a tax.
Mr Abbott said it was worth pondering why so many people believed that putting a ''price on carbon'' was the best way to reduce emissions, ''when no one says that we should continue to dump toxins in the Yarra on the basis of tradeable certificates''.
With
PETER MARTIN, AAP
Read more: http://www.theage.com.au/national/carbon-price-abbott-at-odds-with-economists-20110701-1gvcx.html#ixzz1QwNhFyue
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