http://www.garnautreview.org.au/chp16.htmSome really appealing stuff here -
Low-income households spend much higher proportions of their incomes than other households on emissions-intensive products. The effects of the emissions trading scheme will fall heavily on low-income households...
Climate change and its mitigation can both have significant effects on the distribution of incomes in Australia. Both can lower the income of poor households relative to others if government policy is not well designed to counteract some underlying tendencies....
With a price on emissions, production costs will increase, with the cost of electricity, natural gas, petrol, diesel, chemicals, fertiliser and other inputs all increasing. These costs will be reflected in higher-priced goods, from cement and steel to paper and plastic. This will have an impact on the input costs for a range of industries, including construction and retail. Through the supply chain, those disposing of waste will also pay more, and transport costs will be higher...
Consumers will pay more for a range of goods and services as businesses pass on the emissions price. A major part, if not all, of the costs faced by electricity generators will be passed down the chain from electricity generators, distributors and retailers and finally to households through higher prices for electricity...
These higher prices will require households to spend a greater proportion of their incomes to obtain the same goods and services purchased before the introduction of an emissions price. This will reduce households’ real incomes and purchasing power...
Low-income households spend a greater proportion of their income on basic necessities than households with higher incomes, and will therefore be disproportionately affected...
Let's hear it for an Emissions Trading Scheme.
